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Which of the following bonds offer the investor the most protection?
Suggested Answer: A
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12 comments · newest first
CA
Camellia
3 months ago
But what about B) Debentures? They have a good track record too.
SH
Sharan
3 months ago
I agree, A) is solid. Less risk involved.
JE
Jenifer
3 months ago
I think A) First-mortgage bonds offer the most protection. They are secured by property.
IS
Isabelle
3 months ago
Subordinated debentures are definitely riskier than the others!
AN
Annmarie
3 months ago
Surprised that income bonds are even an option here.
BR
Brandon
4 months ago
I thought debentures were pretty secure too?
RO
Ronald
5 months ago
Totally agree, they have priority in claims.
ST
Staci
5 months ago
First-mortgage bonds are the safest!
LE
Leatha
6 months ago
Income bonds sound familiar, but I can't recall if they offer much protection. I feel like they depend on the issuer's earnings, which makes them riskier.
RA
Rashida
6 months ago
I practiced a question like this before, and I think subordinated debentures are the least protective since they come after other debts in the repayment hierarchy.
KA
Kathrine
6 months ago
I'm not entirely sure, but I remember something about debentures being unsecured, which makes them riskier than the others.
AR
Ardella
6 months ago
I think first-mortgage bonds are usually considered safer because they have a claim on specific assets, right?