2.9. Types of Unsecured Bonds

Question 1

Most corporate bonds are ______, rather than ______

Answer 1

Unsecured, secured

Question 2

What do “unsecured” bonds mean?

Answer 2

Unsecured means that they are only secured by the promise of the company to make the payment rather than a specific physical or financial asset.

Question 3

Unsecured corporate bonds are called _________

Answer 3

Debentures