Types of Long-Term Debt instruments Mortgage Bond -a bond issue secured by a mortgage on the issuers property The issue is secured by a lien on specific assets of the corporation The market value of the collateral should exceed the amount of the bond issue by a reasonable margin of safety to help protect bondholders 20-920-9 Types of Long-Term Debt Instruments The issue is secured by a lien on specific assets of the corporation. The market value of the collateral should exceed the amount of the bond issue by a reasonable margin of safety to help protect bondholders. Mortgage Bond -- A bond issue secured by a mortgage on the issuer’s property