Investing heavily in a firm's bonds, you are concerned about the future bond issues being granted seniority over your issue. Your fear will be gone if you find that your bonds are
A) Subordinated debentures
B) Senior debentures
C) Protected by a clause prohibiting bond refunding
D) Protected by a negative pledge clause
E) Entitled to a residual claim on the firm's assets if default occurs
Correct Answer:
Verified
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