- 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
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 |