Final answer:
A debenture is an unsecured bond not backed by collateral, relying on the creditworthiness of the issuer. Other bond types may include various provisions or be secured by assets, like a blanket mortgage, which is not characteristic of a debenture.The right option is 1)
Step-by-step explanation:
A debenture is an unsecured bond, which means it is not backed by any form of collateral. Instead, debentures are solely backed by the full faith and credit of the issuer, which is often a corporation. This contrasts with secured bonds, which have specific assets pledged as security in case of default. Other bond types can include features such as a bearer form (where the physical bond certificate is required for redemption), call provisions (giving the issuer the right to redeem the bond before it matures), or sinking fund provisions (where the issuer sets aside funds to repay the bond at maturity). A bond secured by a blanket mortgage would be considered a secured bond, not a debenture.