Final answer:
A mortgage bond is the type of bond that is backed by a lien on specified real estate owned by the issuer, providing security to bondholders by giving them a claim over the property in case of issuer default. The correct option is c.
Step-by-step explanation:
A bond is a financial contract in which the borrower agrees to repay the borrowed amount plus interest over time. Different types of bonds are issued by various entities, including corporate bonds by firms, municipal bonds by cities, state bonds by states, and Treasury bonds by the federal government through the U.S. Department of the Treasury.
The correct answer to the question is: A(n) mortgage bond is backed by a lien on specified real estate owned by the issuer.
This means that the bond is secured by the real estate property, and the property can be claimed in the event that the bond issuer defaults on the bond repayments. A mortgage bond gives its holders a claim over specified real estate assets if the issuer fails to meet its obligations. The correct option is c.