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The Unsecured Bonds That Do Not Have the First Claim

Question 2

Multiple Choice

The unsecured bonds that do not have the first claim in a bankruptcy proceeding are called _________. They will only be paid if funds remain after payment on other bond issue has been satisfied during a liquidation.


A) senior indentures
B) senior debentures
C) subordinated indentures
D) subordinated debentures
E) plain vanilla bonds

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