________ are bonds whose holders have claims against only the assets that remain after the claims of the more senior general creditors are satisfied.
A)Subordinated debentures
B)Mortgage bonds
C)Callable bonds
D)Sinking fund bonds
E)Convertible bonds

Question

Quizplus · Accepted Answer

Subordinated debentures are bonds that are ranked lower in priority compared to general creditors in case of a bankruptcy or liquidation of a company. This means that holders of subordinated debentures will receive payment only after the more senior creditors are fully paid. As a result, subordinated debentures are considered riskier than other types of bonds because they carry a higher default risk.

________ Are Bonds Whose Holders Have Claims Against Only the Assets