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From the viewpoint of the investor, which of the following securities provide the least risk? a. Mortgage bond b. Subordinated Debenture c. income bond d. Debentures
Mortgage Bond because they are backed by mortgage properties, in case of default the investor is paid by liquidating those assets. Income bonds pay interest only in case the company is in profit. Where as Debentures and subordinated debentures are not backed by any guarantee such as assets etc.
The answer : Mortgage bond
A. Mortgage Bond. It is bond backed by the pool of mortgages on a real estate asset.
A
Mortgage Bond.. As the Investment done against the secuirty of the property...
a). Mortgage bond will provide a least risk to investor
Definitely it will be mortgage bond
Mortagage bonds are certainly have some tangible assets to secure the invested amount. Hence secured.
Mortgage bond ,These bonds are typically backed by real estate holdings. In a default situation the underlying property and could sell it off to compensate for the default
A
