Question

g A Mortgage Backed Bond is: Group of answer choices a. A mortgage-backed security that pass-through promised payments of principal and interest on pools of mortgages b. A mortgage-backed security issued in multiple classes or tranches c. A bond collateralized by a pool of mortgages d. An option to purchase a pool of mortgages e. A loan in which security interest in real estate is granted by a borrower

Answer 1

Answer:

A Mortgage Backed Bond is:

e. A loan in which security interest in real estate is granted by a borrower.

Explanation:

A mortgage backed bond is tied to or secured on a real estate asset.  This implies that the bond is not just a promise to pay a debt obligation but the attached promise is secured or backed by some real assets.  There is extra security provided for the bond because specific assets are identified as securities for the bond.  Since the bonds are associated with some real assets, the assets can be traded in the event that the debt obligations are not met.