Which One of the Following Is an Unsecured Bond That

question 107

Multiple Choice

Which one of the following is an unsecured bond that has a higher claim on a firm's assets than other unsecured bonds?

• A)plain vanilla bond
• B)subordinated debenture
• C)refunded bond
• D)senior debenture
• E)collateral trust bond

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Definitions:

Asset Allocation

The process of spreading investments among various categories of assets (e.g., stocks, bonds, real estate) to optimize risk and return.

Risk Tolerance

The degree of variability in investment returns that an investor is willing to withstand.

Financial Statements

Formal records of the financial activities and position of a business, individual, or other entity, including the balance sheet, income statement, and cash flow statement.

Expected Return

The mean of the probability distribution of possible returns for an investment, taking into account all known risks and opportunities.