Which statement most accurately distinguishes a secured bond from an unsecured bond?
A secured bond gives bondholders a direct claim on specific collateral in default, whereas an unsecured bond gives only a general claim on issuer assets.
A secured bond always has a floating coupon, whereas an unsecured bond always has a fixed coupon.
A secured bond is issued only in money markets, whereas an unsecured bond is issued only in capital markets.
A secured bond eliminates default risk, whereas an unsecured bond does not.