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Examveda

Mortgage bonds issued by corporations are considered as

A. secured debt issues

B. unsecured debt issues

C. volatile debt issues

D. collateral debt issues

Answer: Option A

Solution(By Examveda Team)

Mortgage bonds issued by corporations are considered as secured debt issues. Secured debt is debt backed or secured by collateral to reduce the risk associated with lending, such as a mortgage. If the borrower defaults on repayment, the bank seizes the house, sells it and uses the proceeds to pay back the debt.

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