Which of the Following Types of Bonds Have the Lowest

question 147

Multiple Choice

Which of the following types of bonds have the lowest risk?

• A)closed-end mortgage bond
• B)subordinated debenture
• C)open-end mortgage bond
• D)all the above would have the same risk

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Definitions:

Assets

Resources owned by an individual or entity that are expected to provide future economic benefits.

Lessor

A lessor is an individual or entity that leases property or equipment to another, known as the lessee, under a lease agreement.

Lessee

An individual or entity that leases or rents property from the owner under a contract.

Title

The legal right to own, possess, or use property.