All of the following are types of innovative bonds except:
A) preferred stock.
B) asset-backed bonds.
C) collateralized debt obligations (CDOs).
D) mortality bonds.

Question

Quizplus · Accepted Answer

Preferred stock is a type of equity investment and not a bond. The other options listed are all types of innovative bonds. Asset-backed bonds are backed by a pool of assets, such as mortgages or car loans. Collateralized debt obligations (CDOs) are backed by a pool of debt, such as corporate loans or mortgages. Mortality bonds are a type of insurance-linked security that allows investors to bet on mortality rates.

All of the Following Are Types of Innovative Bonds Except