Explain the difference between a secured bond and a debenture. ...

[cmoore54]

Explain the difference between a secured bond and a debenture.
 
  What will be an ideal response?

Question 2

If any merchandise has been returned, the sales discount is calculated on the net sales amount.
 a. True
   b. False
   Indicate whether the statement is true or false

[Kingjoffery]

Answer to Question 1

A secured bond has collateral to back the bond. If the issuer of the bond does not keep up with the interest payments owed on the bond, then the bondholders have the right to take possession of the collateral that backs the bond. A debenture is a bond backed only by the credit rating of the issuing company. There is no collateral available to bondholders in case of default.

Answer to Question 2

True

[cmoore54]

TYSM

[bimper21]

Gracias!