Practicing Success
Naked debenture are also known as: |
Perpetual debentures Deep Discount Bond Mortgage debenture Unsecured debenture |
Unsecured debenture |
The correct answer is Option (4) - Unsecured debenture. Unsecured debentures lack a specific claim or lien on the assets of the company. In the event of default, it is possible for a floating charge to be created on these debentures, but it's important to note that unsecured debentures with this feature are not commonly issued. These debentures are also called naked debentures. |