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Which financial instrument represents a long-term debt security backed by specific physical corporate collateral or assets?

ADebenture
BMortgage Bond
CSubordinated Note
DCommercial Paper

Explanation

• Mortgage Bonds are secured debt obligations backed by specific physical real estate assets or land owned by the issuing entity.
• Unsecured corporate bonds backed only by general creditworthiness are referred to as Debentures.
• Secured bondholders hold priority claims over liquidation proceeds if default occurs.

Exam Relevance
  • Topic: Corporate Finance
  • Subtopic: Debt Securities
Submitted by: mcqstutor Team More Finance & Accounting MCQs →

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