Q269
Mortgage bonds issued by corporations are considered as
A.
secured debt issues
AnswerB.
unsecured debt issues
C.
volatile debt issues
D.
collateral debt issues
Answer: Option A
Solution
Answer: Option A
Solution:
Mortgage bonds issued by corporations are considered as secured debt issues. Secured debt is debt backed or secured by collateral to reduce the risk associated with lending, such as a mortgage. If the borrower defaults on repayment, the bank seizes the house, sells it and uses the proceeds to pay back the debt.