You can distinguish the various types of bonds by their terms of contract, pledge of collateral, and so on. Identify the type of bond based on each description given in the table that follows: Description Type of Bond These bonds are collateralized securities with first claims in the event of bankruptcy. These bonds are considered the riskiest of all corporate bonds Subordinated debentures and thus offer the highest interest rates. These bonds are not backed by any physical collateral. They are backed by the reputation and creditworthiness of the issuing company. You can distinguish the various types of bonds by their terms of contract, pledge of collateral, and so on. Identify the type of bond based on each description given in the table that follows: Description Type of Bond These bonds are collateralized securities with first claims in the event of bankruptcy. These bonds are considered the riskiest of all corporate bonds Subordinated debentures and thus offer the highest interest rates. These bonds are not backed by any physical collateral. They are backed by the reputation and creditworthiness of the issuing company