Question

The payment of interest and principal on these bonds is secured by the: A. full faith and credit of Toga County Corporation B. ships and other equipment pledged as collateral by the company C. securities of the company which have been pledged as collateral under a subordination agreement D. mortgages on the real property owned by the corporation

Answer 1

Answer:

a. full faith and credit of Toga County Corporation

Explanation:

Since these bonds are debentures ( i.e bonds issued by public companies to raise money from the market), they are backed solely by the full faith and credit of the Toga County Corporation. So there is no property backing these bonds.