Bonds used in purpose of specific projects which are financed by collateral for issuing bonds are classified as

A indenture bonds
B trustee bonds
C collateral bonds
D mortgage bonds

Correct Answer: mortgage bonds

Bonds used in purpose of specific projects which are financed by collateral for issuing bonds are classified as mortgage bonds. A mortgage bond is a bond secured by a mortgage or pool of mortgages. These bonds are typically backed by real estate holdings and real property such as equipment. In a default situation, mortgage bondholders have a claim to the underlying property and could sell it off to compensate for the default.
Bissoy MCQ
#Management #International Finance And Treasury

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