In the case of a corporate bankruptcy,bondholders are paid before any distributions are paid to preferred or common stockholders.

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In a corporate bankruptcy scenario, bondholders have priority over preferred and common stockholders. This means that they are entitled to receive their payments first before any distributions are made to other classes of shareholders. This is because bonds are considered as debt instruments and bondholders are creditors of the company, while stocks represent ownership interest in the company. As a result, bondholders have a higher claim on the company's assets and earnings in case of insolvency or liquidation.

In the Case of a Corporate Bankruptcy,bondholders Are Paid Before