CFA Practice Question
Which of the following U.S. bonds are secured only by the reputation of the issuing firm?
A. Debenture bonds
B. Bearer bonds
C. Unfunded bonds
Explanation: In the U.S. debentures are unsecured bonds with no collateral backing assigned to the bondholder.
User Contributed Comments 3
| User | Comment |
|---|---|
| yoshikoto | How are CPs different from debentures? |
| poomie83 | Debentures are unsecured bonds |
| sm200 | @yoshikoto CPs are promissory notes and debentures are similar to bonds |