In the event of liquidation, a(n) _____ has a claim on assets only after the senior debt has been paid off.

Question

Quizplus · Accepted Answer

A subordinated debenture is a type of bond that has a lower priority for repayment in case of liquidation than other senior debts. This means that the holders of subordinated debentures will only receive their share of assets after senior debts like secured bonds or mortgages have been paid off. Therefore, option D is the correct choice.

In the Event of Liquidation, A(n) _____ Has a Claim