Smithfield Enterprises Issues Debt with a Maturity of Seven Years

Multiple Choice

Smithfield Enterprises issues debt with a maturity of seven years. In the case of bankruptcy, holders of this debt may only claim those assets of the firm that are not already pledged as collateral on other debt. Which of the following best describes this type of corporate debt?

A) Unsecured debt
B) A mortgage bond
C) An asset-backed bond
D) A note