Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

11. Long Term Liabilities

Introduction to Bonds and Bond Characteristics

Financial Accounting

11. Long Term Liabilities

Introduction to Bonds and Bond Characteristics

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Multiple Choice

Which type of bonds are collateralized securities with first claims in the event of bankruptcy?

Debenture bonds

Subordinated bonds

Mortgage bonds

Convertible bonds

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Verified step by step guidance

Understand the concept of collateralized securities: These are bonds backed by specific assets as collateral, providing security to bondholders in case of default.

Learn about the different types of bonds mentioned: Debenture bonds are unsecured and not backed by collateral. Subordinated bonds have lower priority claims in bankruptcy. Convertible bonds can be converted into equity but are not necessarily collateralized.

Focus on mortgage bonds: These are secured bonds backed by real estate or physical assets, giving them first claims in the event of bankruptcy.

Compare mortgage bonds to the other types: Mortgage bonds are unique because they are collateralized, unlike debenture, subordinated, or convertible bonds.

Conclude that mortgage bonds are the correct answer because they are collateralized securities with first claims in bankruptcy situations.