Which of the Following Bonds Does Not Have Specific Assets

question 34

Multiple Choice

Which of the following bonds does not have specific assets pledged to guarantee repayment?

• A)Debenture bond
• B)Callable bond
• C)Discount bond
• D)Convertible bond

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Definitions:

Operating Cash Flows

The cash generated from the normal operations of a business, such as revenue from sales after operating expenses are deducted.

Fixed Assets

Long-term tangible assets that are used in the operations of a business and are not expected to be consumed or sold within a year.

Salvage Value

The projected remaining worth of an asset upon reaching the end of its serviceable life.

Straight-Line Depreciation

A formula for distributing the cost of a tangible asset over its period of usability in consistent annual sums.