A type of bond that is unsecured and gives bondholders a claim secondary to that of other designated bondholders with respect to interest payments,repayment,and assets is called a:
A)debenture bond.
B)mortgage bond.
C)subordinated debenture.
D)preemptive bond.
E)treasury bond.

Question

Quizplus · Accepted Answer

Subordinated debentures are unsecured bonds that rank below other, more senior loans or securities with respect to claims on assets or earnings. In the event of a liquidation, subordinated debenture holders are paid out after claims made by secured creditors and bondholders have been satisfied.

A Type of Bond That Is Unsecured and Gives Bondholders