An unsecured bond that has a claim that is after all other debt holders is known as a(an):
A) debenture.
B) indenture.
C) mortgage bond.
D) subordinated debenture

Question

Quizplus · Accepted Answer

A subordinated debenture is an unsecured bond that ranks below other, more senior debt securities in the issuer's capital structure in terms of claim on assets or earnings. This means in the event of a liquidation, holders of subordinated debentures get paid out after all other debt holders have been satisfied.

An Unsecured Bond That Has a Claim That Is After