alleryStart learning →What name is given to an unsecured corporate bond?
AA mortgage bond
BA municipal bond
CA revenue bond
DA debenture
Answer & Solution
Correct answer: D. A debenture
1. Corporate bonds are issued by corporations and usually have a par value of $1,000.
2. They may be secured or unsecured, and the unsecured ones are called debentures.
3. Mortgage bonds are the opposite case, secured by property such as land, buildings or equipment.
4. Municipal and revenue bonds are issued by governments rather than corporations.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 16 "Understanding Financial Management and Securities Markets", section 16.6 Securities Markets_
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