CFA Practice Question

CFA Practice Question

Which of the following is most likely incorrect?
A. A corporate bond that is secured has collateral, which is pledged to ensure that there is payment of the debt.
B. A debenture bond is an unsecured debt that doesn't have the collateral pledge.
C. Collateral trust bonds are secured debts backed by property, plant and equipment.
Explanation: Collateral trust bonds are secured debts backed by stocks, bonds and other securities the issuer owns in other companies.

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