A debt instrument guaranteed by an entity other than the issuer is called:

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Multiple Choice

A debt instrument guaranteed by an entity other than the issuer is called:

Explanation:
Credit is enhanced when a third party guarantees the debt, promising to pay principal and interest if the issuer cannot. That structure describes a guaranteed bond, where the guarantee comes from an entity other than the issuer. A debenture is an unsecured loan backed only by the issuer’s credit. A mortgage bond is secured by a specific asset, typically real estate. A revenue bond is paid from the income of a particular project or facility, not from a guarantor’s promise. So the instrument protected by another party’s guarantee is the guaranteed bond.

Credit is enhanced when a third party guarantees the debt, promising to pay principal and interest if the issuer cannot. That structure describes a guaranteed bond, where the guarantee comes from an entity other than the issuer. A debenture is an unsecured loan backed only by the issuer’s credit. A mortgage bond is secured by a specific asset, typically real estate. A revenue bond is paid from the income of a particular project or facility, not from a guarantor’s promise. So the instrument protected by another party’s guarantee is the guaranteed bond.

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