SIE Exam Practice Question 956
Question: 956
Which of the following is a characteristic of a debenture bond?
Correct Answer: B
Explanation:
Debenture bonds are unsecured bonds, and debenture bondholders have the same rights as general creditors. To account for the higher default risk, debenture bonds will have higher yields to maturities than secured bonds issued for the same term by the same issuer.
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