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During a Bankruptcy Proceeding, Bond a Will Be Paid Only

Question 2

Multiple Choice

During a bankruptcy proceeding, Bond A will be paid only if funds remain after the bonds that have a higher claim on the issuer's assets have been paid. What type of bond is Bond A?


A) plain vanilla bond
B) senior trust bond
C) junior trust bond
D) subordinated debenture
E) senior debenture

Correct Answer:

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