Asked by Raman Chahal on Jul 05, 2024
Verified
A mortgage bond is ________.
A) secured by other securities held by the firm
B) secured by equipment owned by the firm
C) secured by property owned by the firm
D) unsecured
Mortgage Bond
A type of bond secured by a mortgage on one or more assets, offering the bondholder a claim against the assets in case of default.
Securities
Financial instruments that represent an ownership position in a corporation (stocks), a creditor relationship with a governmental body or a corporation (bonds), or rights to ownership as represented by an option.
Equipment
Tangible property other than land or buildings that is used in the operations of a business, such as machinery, tools, or vehicles.
- Identify the differences between secured and unsecured bonds in terms of collateral involvement.
Verified Answer
KG
Kewani GebreslassieJul 07, 2024
Final Answer :
C
Explanation :
A mortgage bond is a bond that is secured by property owned by the firm. This means that in the event of default, the bondholders have a claim on the property to recover their investment. The other options are incorrect as they do not relate to the specific security used to secure a mortgage bond.
Learning Objectives
- Identify the differences between secured and unsecured bonds in terms of collateral involvement.