Examveda
Examveda

An unsecured bond that provides no lien against property as security for bond obligation is classified as

A. secured bond

B. debenture

C. obligation bond

D. specific bond

Answer: Option B

Solution(By Examveda Team)

An unsecured bond that provides no lien against property as security for bond obligation is classified as debenture. A debenture is a type of debt instrument that is not secured by collateral and usually has a term greater than 10 years. Debentures are backed only by the creditworthiness and reputation of the issuer. Both corporations and governments frequently issue debentures to raise capital or funds.

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