What is the difference between a secured bond and a debenture bond?
What will be an ideal response?
Answer: A secured bond is backed by specific pledged assets such as equipment or property as security for meeting the terms of the bond agreement.
Debenture bonds are not backed by specific pledged assets as collateral. Since the bonds are unsecured, risk may be higher than on secured bonds. These bonds will often require a higher rate of interest to make them attractive to investors.
You might also like to view...
Refer to the information above. If Caesar Corporation had reacquired 7,000 shares of treasury stock early in 2015, then some treasury stock must have been sold during 2015 for:
A. $8 per share. B. $12.00 per share. C. $1.50 per share. D. $5 per share.
How much did WAMC's "First Amendment Fund" balance increase or decrease between June 30 2005 and June 30, 2006?
Where did you find the information? Are these funds unrestricted, temporarily or permanently restricted for accounting purposes? Why? Support your answers with the appropriate numbers from the statements.