In Canadian usage, an unsecured corporate debt security is called:
In Canadian usage, an unsecured corporate debt security is called:
Answer
A debenture
Options - A. A debenture - B. A mortgage bond - C. A collateral trust bond - D. A strip bond Why - A. Correct — backed by the issuer’s general credit only; it ranks behind the secured bonds. - B. A mortgage bond is SECURED by real property — the opposite. - C. A collateral trust bond is secured by securities the issuer pledges. - D. A strip is a zero-coupon piece of a bond (Lesson 9.4) — a cash-flow shape, not a security ranking.
OpenStax, Introduction to Business (CC BY 4.0) §16.6 — bond-type shape only, its US municipal tax exemption deliberately not transplanted; term buckets and the bond/debenture usage are CSC register (verified-facts §2.7 G03, G04, G13 — no year graded); original issuers