The mortgage bonds issued by the corporations are considered as _________?
Correct answer: A. secured debt issues
- A. secured debt issues
- B. unsecured debt issues
- C. volatile debt issues
- D. collateral debt issues
Explanation
Mortgage bonds are backed by specific real-estate assets that can serve as security for the debt, giving bondholders a claim on the collateral if the issuer defaults. They are therefore secured rather than unsecured debt issues.
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About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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