What type of bond whose guaranty is in lien on railroad equipment, such as freight and passenger cars, locomotives, etc.? A. Railroad bond B. Equipment obligation bond C. Equipment bond D. Equipment trust bond

The correct answer is: D. Equipment trust bond

An equipment trust bond is a type of bond that is secured by a lien on equipment, such as freight and passenger cars, locomotives, etc. The bond is issued by a railroad company, and the proceeds are used to purchase the equipment. The equipment is then held in trust by a trustee, who is responsible for collecting the payments on the bond and using them to pay off the debt.

Equipment trust bonds are considered to be a relatively safe investment, as the equipment is used as collateral. However, there is some risk involved, as the equipment may be damaged or destroyed, or the railroad company may default on the loan.

The other options are incorrect because:

• A. Railroad
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  bond is a general term for any bond that is issued by a railroad company. It does not specify that the bond is secured by equipment.
• B. Equipment obligation bond is a type of bond that is secured by a lien on equipment, but it is not specifically for railroad equipment.
• C. Equipment bond is a general term for any bond that is secured by equipment. It does not specify that the bond is issued by a railroad company.