An unsecured bond is the same as a
A) serial bond.
B) zero coupon bond.
C) debenture bond.
D) secured bond.

Question

Quizplus · Accepted Answer

An unsecured bond is also known as a debenture bond. This type of bond does not have any collateral backing, meaning that it is not secured by any specific asset. This makes it riskier for investors, but it also usually comes with a higher interest rate to compensate for the increased risk. A serial bond refers to a bond issue that matures in installments, while a zero coupon bond does not pay interest but is sold at a discount to its face value. A secured bond is backed by specific assets as collateral.

An Unsecured Bond Is the Same as a