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All of the following are true of mortgage bonds, except:
All of the following are true of mortgage bonds, except:a) Mortgage bonds are secured by specific assets.
b) Interest rates on mortgage bonds are usually lower than interest rates on unsecured debentures.
c) Mortgage bonds are less secure than other types of corporate bonds.
d) Mortgage bonds are more secure than other types of corporate bonds.
e) If the corporation fails to make interest payments under mortgage bonds, assets and collateral can be sold to repay the bondholders
Final answer:Statement c) is not true regarding mortgage bonds. Mortgage bonds are actually more secure than other types of corporate bonds because they are backed by specific assets as collateral. so , correct option is c) Mortgage bonds are less secure than other types of corporate bonds. .Explanation:The statement about mortgage bonds that is not true is:Mortgage bonds are less secure than other types of corporate bonds.The correct facts about mortgage bonds are as follows:Mortgage bonds are secured by specific assets.Interest rates on mortgage bonds are usually lower than interest rates on unsecured debentures because they are backed by collateral.Mortgage bonds are more secure than unsecured bonds since they have collateral backing them.If the corporation fails to make interest payments under mortgage bonds, assets and collateral can be sold to repay the bondholders....