A type of bond that is unsecured and gives bondholders a claim secondary to that of other designated bondholders, with respect to both income and assets is called a(n):

Question

Quizplus · Accepted Answer

A subordinated debenture is an unsecured bond that ranks lower in priority than other designated bonds in terms of income and assets. This means that in the event of liquidation, the holders of other designated bonds will be paid before subordinated debentureholders.

A Type of Bond That Is Unsecured and Gives Bondholders