Bonds that have specific assets of the issuer pledged as collateral are
A) secured bonds.
B) callable bonds.
C) convertible bonds.
D) debenture bonds.

Question

Quizplus · Accepted Answer

Bonds that have specific assets pledged as collateral are often called secured bonds. The collateral can be in the form of property, equipment, or financial assets that belong to the issuer. If the issuer defaults on the bonds, the bondholders have a legal claim to the collateral in order to recover their investment.

Bonds That Have Specific Assets of the Issuer Pledged as Collateral