Accounting Dictionary
Unsecured Bond
An unsecured bond is a long term liability has no collateral.
Let’s say American Airlines issued an unsecured bond. If they didn’t pay, there’s nothing the bond holders could seize to try to get their money back. They would have to sue the company to try to collect.
https://accounting.uworld.com/cpa-review/lc/accounting-dictionary/term/unsecured-bond/
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