Question

These bonds are not backed by any physical collateral. They are backed by the reputation and creditworthiness of the issuing company.

Answer 1

Debentures are bonds that are not backed by any physical collateral. They are backed by the reputation and creditworthiness of the issuing company.

Are debentures backed by assets?

Because the issuer anticipates paying back the loans with money from the sale of the business initiative they helped fund, debentures are also known as revenue bonds. Debentures are not backed by tangible property or collateral. They have the issuer's full faith and credit as their only guarantee.

What is debenture and its characteristics?

An extended source of funding is provided by the debentures. They are made up of a protracted predetermined maturity phase. The debentures are typically repaid at the conclusion of their 10–20 year maturity period. The business returns the investor's principal investment amount at maturity.

Learn more about debentures backed by assets: brainly.com/question/14788206

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