Long-Term Unsecured Bonds That Are Backed Only by the General

question 46

Multiple Choice

Long-term unsecured bonds that are backed only by the general creditworthiness of the issuer are called

• A) junk bonds.
• B) callable bonds.
• C) convertible bonds.
• D) debentures.

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Definitions:

Poly(Vinyl Chloride)

A synthetic plastic polymer commonly known as PVC, widely used in construction, pipes, and as insulation for electrical wires due to its durability.

Monomer

A small molecule that can bind chemically to other monomers to form a polymer.

Polyethylene

A polymer made from the polymerization of ethylene, used in a wide array of products, including plastic bags, films, and containers.

Carbon-Carbon Double Bond

A chemical bond between two carbon atoms involving four bonding electrons, making compounds more reactive.