All Courses > Bonds > 100
Bonds 107: Secured and Unsecured Bonds

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
Mortgage bonds are backed by _______.
Choose wisely. There is only one correct answer.
Real estate. That is why they are called mortgage bonds.
2.
Although unsecured bonds have no backing, they are protected from default by a promise to pay.
Choose wisely. There is only one correct answer.
True. This promise is called "full faith and credit," and many corporations and government units with good credit use it.
3.
Which unsecured bond can be exchanged for stock?
Choose wisely. There is only one correct answer.
Convertible bond. This bond has no collateral backing it.
4.
What is a debenture?
Choose wisely. There is only one correct answer.
A bond without collateral behind it. Some pay high yields, and many are sold by corporations, but all of them lack collateral.
5.
Unsecured bonds are issued with the issuer's promise to offer stock options in the future.
Choose wisely. There is only one correct answer.
False. The sellers do not offer stock options to investors at a later date when issuing unsecured bonds.