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

Understand the Problem

The question is asking for the term that describes a specific type of corporate bond, specifically one that is secured by assets. The goal is to identify the correct terminology from the provided options.

More Information

A mortgage bond is a type of corporate bond that is secured by a mortgage on the real estate assets of the issuer. This provides investors with a higher level of security, as the property can be sold to reimburse bondholders if the company defaults.

Tips

A common mistake is confusing 'mortgage bond' with a 'debenture,' which is actually unsecured and not based on the company's physical assets.

Sources

• Solved A corporate bond that is secured by various assets of - Chegg - chegg.com