Which of the following provides the buyer with collateral?
A)Secured bond
B)Unsecured bond
C)Debenture bonds
D)Common stock

Question

Quizplus · Accepted Answer

A secured bond provides the buyer with collateral, which is typically specified in the bond contract and may include property, equipment, or other assets that the company owns. This collateral provides a level of security for the bondholder, as it can be seized and sold to repay the bond if the company defaults on its payments. Unsecured bonds, debenture bonds, and common stock do not provide collateral for the buyer.

Which of the Following Provides the Buyer with Collateral