A bond that is backed only by the reputation of the issuing corporation is called:

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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.

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