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A(n) bond is backed by a lien on specified real estate owned by the issuer.

a) Municipal bond
b) Corporate bond
c) Treasury bond
d) Mortgage-backed bond

User Micael
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1 Answer

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Final answer:

A mortgage-backed bond is backed by a lien on specified real estate, providing security for the bondholders with the property as collateral, unlike other types of bonds such as corporate, municipal, or Treasury bonds.

Step-by-step explanation:

The type of bond that is backed by a lien on specified real estate owned by the issuer is known as a mortgage-backed bond. Unlike corporate bonds, municipal bonds, or Treasury bonds which are issued by firms, cities, or the federal government respectively, a mortgage-backed bond is secured by the mortgages on real estate properties. With these bonds, if the borrower defaults, the bondholders have a claim to the underlying property as collateral for their investment.

User Kmort
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