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A debenture is: a. an unsecured bond b. a bearer form bond c. a bond with...

A debenture is:

a. an unsecured bond

b. a bearer form bond

c. a bond with a call of provison

d. a bond with a sinking fund provision

e. a bond secured by a blanket mortgage

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Answer #1

A debenture is an unsecured bond issued by a company without secured by physical assets or collateral. Debentures have no collateral.

Bond buyers generally purchase debentures based on the trust that the bond issuer is unlikely to default on the compensation.

Hence A debenture is an unsecured bond.

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