The most common type of corporate bond, except in the railroad and public utility industries, that carries no special collateral and the borrower issues it on the general credit of the business is called a
A)sinking fund bond.
B)serial funded bond.
C)debenture bond.
D)convertible bond.
E)zero coupon bond.

Question

Quizplus · Accepted Answer

A debenture bond is a type of corporate bond that does not have any special collateral backing and is issued solely based on the general creditworthiness of the borrower. This is the most common type of corporate bond, except in the railroad and public utility industries.

The Most Common Type of Corporate Bond, Except in the Railroad