Which type of bond did the organization issue?

exams IIA-CIA-Part3 V1 IIA-CIA-Part3 exam 0 Comments

An organization with a stable rating, as assessed by International rating agencies, has issued a bond not backed by assets or collateral. Payments of the interests and the principal to bondholders are guaranteed by the organization.

Which type of bond did the organization issue?
A . A sinking fund bond.
B. A secured bond.
C. A junk bond.
D. A debenture bond

Answer: D