In case of bankruptcy, an unsecured bond that has a higher claim on a company's assets than another bond is called _________.

Question

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Senior debentures are unsecured bonds that have a higher priority claim on a company's assets than other unsecured bonds in the event of bankruptcy. They are considered to be safer and less risky than subordinated debt, which is a lower priority debt. Senior debentures are usually issued with lower interest rates than subordinated debt because they are less risky.

In Case of Bankruptcy, an Unsecured Bond That Has a Higher