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D) $400 15. Which of the following describes a debenture? A) A bond that repays principal in installments B) A bond that give
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Answer #1

Q-15)Which of the following describes a debenture?

Answer) Option-D) bond that is not backed by specific assets.

.

Reason:

1)In Debenture, principal is paid at the end of life of the debenture.

2)A debenture is unsecured by collateral, so bondholder has no claim for specific assets if the issuer fails to pay.

3)A debenture is not backed by specific assets.

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