The recovery rate on defaulting debt is the least for the following type of debt:
A) Bank debt
B) Senior secured bonds
C) Senior subordinated bonds
D) Junior subordinated bonds

Name: The recovery rate on defaulting debt is the least for the following type of debt: A) Bank debt B) Senior secured bonds C) Senior subordinated bonds D) Junior subordinated bonds
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Question

Quizplus · Accepted Answer

Junior subordinated bonds are the riskiest type of debt and thus have the least recovery rate in case of default.

The Recovery Rate on Defaulting Debt Is the Least for the Following