If a company enters bankruptcy court, bondholders should realize

Question

If a company enters bankruptcy court, bondholders should realize​

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When a company enters bankruptcy court, bondholders may lose their investments as the company may not be able to pay the full amount owed to them. Bondholders are typically considered to have a lower position in the capital structure compared to stockholders, who are the owners of the company and have a greater potential for financial gain if the company is successful. Subordinated debt is not paid off at face value and convertible debt may or may not be superior depending on the specific terms of the bond agreement.

If a Company Enters Bankruptcy Court, Bondholders Should Realize​

If a Company Enters Bankruptcy Court, Bondholders Should Realize