Question

Unsecured debentures are safer than secured debentures. (State True or False)

Answer 1

False . Hope this answer will help you

Answer 2

Answer:

False

Explanation:

Unsecured debentures are safer than secured debentures - False

Unsecured debentures are issued without any safety or fee, while guaranteed debentures are issued on a company's assets with safety or fee (floating or fixed). Secured debentures are therefore more safe because if a business fails to pay interest, debenture holders can sell off the property to recover their dues.