A ________ is an unsecured bond, and most of the bonds sold today in the United States are of this type.A) mortgage bondB) deben

Question

snow_tiger [21]

2 years ago

8

A ________ is an unsecured bond, and most of the bonds sold today in the United States are of this type.A) mortgage bondB) deben

tureC) senior bondD) bond indenture

Business

1 answer:

topjm [15] · Answer 1 · 2022-10-22T16:43:52+03:00

Answer:

B) debenture

Explanation:

A bond refers to a debt or fixed investment security, in which a bondholder (creditor or investor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time.

Generally, the bond issuer is expected to return the principal at maturity with an agreed upon interest to the bondholder, which is payable at fixed intervals.

A debenture is an unsecured bond, and most of the bonds sold today in the United States are of this type because it's a long-term security that yields fixed rate of interest.