Frank Riley just purchased a bond that is unsecured and is secondary to other unsecured bonds with respect to interest payments or repayment at maturity.What type of bond has Frank purchased?

Question

Quizplus · Accepted Answer

Subordinated debentures are unsecured bonds that rank below other, more senior unsecured bonds with respect to interest payments and repayment at maturity. This means they are more risky and typically offer a higher yield to compensate for this increased risk.

Frank Riley Just Purchased a Bond That Is Unsecured and Is