What type of bond is secured by various assets of the firm?
A)Mortgage
B)Collateral
C)Convertible
D)Callable
E)Bearer

Question

Quizplus · Accepted Answer

A mortgage bond is secured by specific assets of the issuing firm, such as real estate or other fixed assets. If the firm defaults on the bond, the bondholders have a claim on these assets, which can be sold to repay the bondholders. This provides a higher level of security for investors than unsecured or debenture bonds, as the assets provide collateral for the bondholders.

What Type of Bond Is Secured by Various Assets of the Firm