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Which type of debt instrument gives the issuing company a right and you obligation?

Which type of debt instrument gives the issuing company a right and you obligation?

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Answer: Mortgage- A mortgage is a debt instrument that a borrower is obliged to pay to the issuer. Individuals and business take mortgage loan from bank or other financial institutions to build the properties. They have to repay it back to the issuer. Mortgage is backed by the property so issuer has right on mortgage property, if borrower defaults in repaying the mortgage loan, issuer bank can retain the property of the borrower. Borrower has obligation to repay the mortgage loan back to issuer.

Mortgage loans are of three types-

  • Home loan
  • Commercial property loans
  • Loan against property.
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