Qualified Financial Adviser (QFA) Pensions Exam 1 Practice Test

A corporate bond secured over some of the assets of the company is called a:

Gilt Debenture Treasury Coupon

Correct Answer:

Debenture

Explanation:

Secured corporate borrowing is typically called a debenture. A debenture is a debt instrument issued by a company, and when it is secured, the lender has a charge over some of the company’s assets to back repayment. This security distinguishes it from unsecured corporate bonds and from government bonds. In this context, a gilt or treasury would be government bonds, not corporate, and a coupon is just the interest payment. So a corporate bond secured over assets is best described as a debenture.

Access more questions from this quiz

Continue to Qualified Financial Adviser (QFA) Pensions Exam 1 Practice Test for more practice questions and the full quiz experience.

Access More Questions