As compared to unsecured bonds, the mortgage bonds are considered as __________?
Correct answer: B. less risky
- A. more risky
- B. less risky
- C. term risk
- D. serial risk
Explanation
Mortgage bonds are secured by specific assets, giving bondholders a claim on collateral if the issuer defaults. Unsecured bonds have no such backing, so they carry comparatively greater risk.
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