- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 42. Fixed-Income Securities: Defining Elements
- Subject 2. Bond Indenture
CFA Practice Question
Bonds that are unsecured obligations of the companies are called ______.
B. debentures
C. bearers
A. indentures
B. debentures
C. bearers
Correct Answer: B
User Contributed Comments 7
| User | Comment |
|---|---|
| chenyx | debentures are unsecured obligations of the company. |
| shawnryu | indentures is just contract notes regardless of whether secured or not |
| studyprep | example: debentures (bonds) that are not secured by the assets of a firm. |
| woori | do not confuse with indentures |
| nholm | or dentures for that matter... |
| johntan1979 | LOL there is a reason why bonds are for people nearing retirement |
| reccy | Per cfa: debentures "can be secured or unsecured. In many jurisdictions, debentures are unsecured bonds, with no collateral backing assigned to the bondholders. In contrast, bonds known as â |