A corporate bond that is secured by various assets of the issuing firm is called a(n) ____________ bond.

Question

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A mortgage bond is a type of corporate bond that is secured by various assets of the issuing firm. The assets could include property or equipment that could be sold off in the event that the company defaults on the bond. A debenture bond, on the other hand, is unsecured, meaning there is no collateral backing the bond. An indenture refers to the legal agreement between the issuer and bondholders, while preemptive rights and treasury bonds are unrelated to corporate bonds.

A Corporate Bond That Is Secured by Various Assets of the Issuing