Bonds that are usually unsecured and are only backed by worthiness of issuing firm are classified as
A. untimed indentures
B. untimed debentures
C. indentures
D. debentures
Answer: Option D
Solution (By Examveda Team)
Bonds that are usually unsecured and are only backed by worthiness of issuing firm are classified as debentures. Debentures are a debt instrument used by companies and government to issue the loan. The loan is issued to corporates based on their reputation at a fixed rate of interest. Debentures are also known as a bond which serves as an IOU between issuers and purchaser.This Question Belongs to Management >> International Finance And Treasury
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