Answer (D) is correct . A secured bond is backed by tangible property, making it the safest type for the investor of the four listed.
Answer (A) is incorrect because A debenture bond is backed only by the borrower’s general credit, not by specific collateral.
Answer (B) is incorrect because A deep discount bond is a bond sold for much less than its face value.
Answer (C) is incorrect because An income bond pays interest only if the issuing company has earnings; such bonds are riskier than other bonds.
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