Fill in the Blank QuestionFill in the blank question.A mortgage bond is a corporate bond secured by various of the issuing .
Question
Fill in the Blank Question
A mortgage bond is a corporate bond secured by various ___ of the issuing ___.
Solution
A mortgage bond is a corporate bond secured by various assets of the issuing company.
Mortgage bonds are a category of secured bonds, meaning they are backed by collateral provided by the issuer. In this case, the collateral typically consists of real estate or physical property that the issuing company owns. The advantage of mortgage bonds is that they provide a level of security for investors, as they have a claim on the company’s assets in the event of bankruptcy or liquidation. Should the issuing company fail to meet its obligations, bondholders have the right to take possession of the specified assets to recover their investments. This makes mortgage bonds generally lower-risk compared to unsecured bonds, thereby appealing to more conservative investors.
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