A bond that is backed only by the reputation of the issuing corporation is called:
Understand the Problem
The question is asking for the term used to describe a type of bond that relies solely on the issuing company's reputation for backing, rather than any physical assets. This indicates a conceptual understanding of financial instruments.
Answer
debenture
The final answer is debenture.
Answer for screen readers
The final answer is debenture.
More Information
A debenture is a type of bond not secured by specific assets but rather relies on the issuer's reputation.
Tips
Confusing debentures with other bonds; remember, debentures aren't backed by specific collateral.
Sources
- A bond backed only by the reputation of the issuing corporation - homework.study.com
- Debenture Explained, With Types and Features - Investopedia - investopedia.com
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