Smithfield Enterprises Issues Debt with a Maturity of 7 Years

question 90

Multiple Choice

Smithfield Enterprises issues debt with a maturity of 7 years.In the case of bankruptcy,holders of this debt may only claim those assets of the firm that are not already pledged as collateral on other debt.Which of the following best describes this type of corporate debt?

• A)a note
• B)a mortgage bond
• C)an asset-backed bond
• D)unsecured debt
• E)a debenture

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Definitions:

Depo-Provera

A contraceptive injection for women that contains the hormone progestin to prevent pregnancy.

Fem Cap

A small, dome-shaped, reusable contraceptive device made of silicone that is inserted into the vagina to cover the cervix and prevent sperm from entering.

Intrauterine Device (IUD)

A form of birth control placed inside the uterus to prevent pregnancy by altering the environment for sperm and eggs.

STIs

Sexually Transmitted Infections, a term encompassing various infectious diseases spread through sexual contact.