Which of the following definitions describes a term bond?
A)Matures on a single date.
B)Secured only by the "full faith and credit" of the issuing corporation.
C)Matures in installments.
D)Supported by specific assets pledged as collateral by the issuer.

Question

Quizplus · Accepted Answer

A term bond matures on a single date, as opposed to a serial bond which matures in installments. Option B describes an unsecured bond, while option D describes a secured bond backed by specific assets pledged as collateral by the issuer.

Which of the Following Definitions Describes a Term Bond