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:

Question

Quizplus · Accepted Answer

A subordinated debenture is a type of bond that is unsecured and gives bondholders a claim secondary to that of other designated bondholders. This means that in the event of bankruptcy or default, subordinated debenture holders will receive payment only after the claims of other bondholders have been satisfied.

A Type of Bond That Is Unsecured and Gives Bondholders