Which One of the Following Bonds Is Considered Unsecured

question 108

Multiple Choice

Which one of the following bonds is considered unsecured?

• A)$50,000, 8%, debenture bonds
• B)$100,000, 12%, restricted bonds
• C)$20,000, 10%, five-year callable bonds
• D)$40,000, 6%, collateralized bonds

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Definitions:

Sherman Antitrust Act

A landmark federal statute in the US passed in 1890 that outlaws monopolistic business practices and promotes free competition in the marketplace.

Restraint of Trade

Any activity or agreement that restricts competition in the marketplace, often reviewed under antitrust laws.

Commerce

The activity of buying and selling goods and services, especially on a large scale, including legal, economic, and political interactions.

Antitrust Law

Laws designed to prevent anti-competitive practices, monopolies, and to promote fair competition for the benefit of consumers.