Which one of the following is the most junior in terms of its claim on earnings and assets?
A) subordinated debenture
B) mortgage bond
C) collateral trust bond
D) equipment trust certificate

Question

Quizplus · Accepted Answer

Subordinated debentures are the most junior in terms of their claim on earnings and assets because they are paid after all other debt obligations have been satisfied in the event of a liquidation. This makes them riskier than other types of bonds, such as mortgage bonds, collateral trust bonds, and equipment trust certificates, which have specific assets pledged as collateral.

Which One of the Following Is the Most Junior in Terms