What defines a debenture bond?

A debenture bond is defined as a corporate bond that is secured by the corporation's assets and earnings. This means that the bondholders have a claim on the company's assets in the event of liquidation, which provides them with additional security compared to unsecured bonds. The definition emphasizes the unsecured nature of debentures, where they are essentially backed only by the creditworthiness and reputation of the issuer, rather than specific assets.

In this context, the correct answer highlights the relationship between the bond and the corporation's financial strength, making it particularly relevant for investors assessing risk. This distinguishes debentures from other types of bonds, such as secured bonds, which are explicitly backed by specific collateral. Other choices involve different types of bonds or characteristics that do not align with the specific definition of a debenture.