Question

Secured bonds are bonds that:

a. can be converted into common stock.
b. are in the possession of a bank.
c. have specific assets of the issuer pledged as collateral.
d. mature in installments.

Answer 1

c.

Step-by-step explanation:

Secured bonds are bonds that have specific assets of the issuer pledged as collateral. In other words they are a type of bond that is bought by pledging a specific asset, which acts as a collateral on the loan that you are giving the company. Which if the issuer were to default on the payment then the issuer must transfer ownership of the asset to the holder of the secured bond.