1. indenture bonds
  2. trustee bonds
  3. collateral bonds
  4. mortgage bonds
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1 Answers

Answer: Option 4

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.

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