Description	Type of Bond (selection option between senior mortgage bonds, junior mortgage bonds, debentures or subordinated debentures)
These bonds are backed by real estate holdings and equipment, and if a company goes bankrupt, the collateral can be sold off to compensate for the default. These bonds, more so than other collateralized securities, have prior claims over assets.
These bonds are traded in the bond markets based on investors belief that the issuer will not default on the repayment. These bonds have no collateral and usually offer higher yields.
These bonds have a claim on assets only after senior debt has been paid in full.

QUESTION Ambac Financial Group, MBIA Inc., Federal Guaranty Insurance Company, Assured Guaranty, and CIFG are some of the municipal bond insurance companies in the United States.

Municipal bond insurance companies guarantee to pay (only the principal amount, only the coupon or both the coupon and principal) if the issuer defaults.

QUESTION Based on your understanding of bond ratings and bond-rating criteria, which of the following statements is true?

BBB bonds usually have the lowest yields in the bond markets.

U.S. government bonds usually have the lowest yields in the bond markets.