Which of the following types of bonds have the lowest bondholder security risk?

Question

Quizplus · Accepted Answer

Closed-end mortgage bonds are secured by specific assets or properties, which provides a higher level of security for bondholders compared to subordinated debentures or open-end mortgage bonds. Subordinated debentures are lower in the capital structure and have a higher risk of default, while open-end mortgage bonds are secured by a pool of mortgages, which may not provide as much security as a specific property or asset.

Which of the Following Types of Bonds Have the Lowest