All of the following are true of mortgage bonds, except:

Multiple Choice

Mortgage bonds are secured by specific assets.

Interest rates on mortgage bonds are usually lower than interest rates on unsecured debentures.

Mortgage bonds are less secure than other types of corporate bonds.

Mortgage bonds are more secure than other types of corporate bonds.

If the corporation fails to make interest payments under mortgage bonds, assets and collateral can be sold to repay the bondholders.