FINRA SIE Question Answer
Corporate bonds unsecured by any pledge of property are called:
Debentures
Trust certificates
Collateral trust bonds
General obligation (GO) bonds
Step by Step Explanation:
Debentures: Corporate bonds not backed by physical assets or collateral. They rely on the issuer’s creditworthiness.
Incorrect Options:
B: Trust certificates are a legacy term for bonds backed by a trust.
C: Collateral trust bonds are secured by financial assets.
D: GO bonds are issued by municipalities, not corporations.
SEC Guide on Corporate Bonds: SEC Corporate Bonds.
TESTED 25 Feb 2026
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