Products & Their RisksQuestion 13 of 398
A debenture is best described as a corporate bond that is:
a.Backed by specific real estate owned by the issuer
b.Backed only by the general credit and good faith of the issuer
c.Secured by a portfolio of other companies' securities
d.Guaranteed by the federal government
Explanation
A debenture is an unsecured bond backed solely by the issuer's general credit and promise to pay, not by specific collateral. Mortgage bonds use real estate, collateral trust bonds use other securities, and no corporate bond is federally guaranteed.
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