Which type of financial claim is not satisfied until those of the creditors holding certain senior debts have been fully satisfied?
A) Mortgage bonds
B) Unsecured notes
C) Subordinated debentures
D) Deferred interest debentures

Question

Quizplus · Accepted Answer

Subordinated debentures are a type of financial claim that is subordinate to the claims of senior debt holders. In other words, they are not satisfied until those holding certain senior debts have been fully satisfied. Mortgage bonds and unsecured notes may be senior or junior depending on the specific terms of the debt agreement, and deferred interest debentures do not necessarily have any seniority or subordination status.

Which Type of Financial Claim Is Not Satisfied Until Those