Which of the Following Will Have the Greatest Need of Strong

question 12

Multiple Choice

Which of the following will have the greatest need of strong bond covenants if it is to receive a high bond rating?

• A)a debenture
• B)a mortgage bond
• C)an asset-backed bond
• D)a foreign bond
• E)a Eurobond

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Definitions:

Guarantor

A party that agrees to be responsible for the debt or obligation of another if the original obligor fails to meet their obligations.

Statute of Frauds

A legal principle that requires certain types of contracts to be executed in writing and signed by the party to be charged.

Deed of Trust

A legal document in some states that involves a borrower, lender, and a trustee, securing a real estate transaction as collateral for a loan.

Surety

A person or entity that takes responsibility for the performance of another's obligations, such as fulfilling the terms of a contract or repaying a loan.