With subordinated debentures, payment of interest by a firm is required only when earnings are available.

Name: With subordinated debentures, payment of interest by a firm is required only when earnings are available.
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Subordinated debentures are a type of debt that ranks below other debts with respect to claims on assets or earnings in the event of a liquidation, but interest payments are typically required at fixed intervals, not contingent on the firm's earnings.

With Subordinated Debentures, Payment of Interest by a Firm Is