If a corporation goes into bankruptcy,_________________.

Question

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Senior bondholders have priority over subordinate bondholders in the event of bankruptcy, meaning they will be paid before subordinate bondholders. However, it is important to note that bondholders are not the first to get paid in a bankruptcy proceeding. The order of payment in a bankruptcy is typically secured creditors, followed by administrative expenses (such as legal and accounting fees), priority unsecured creditors (such as taxes owed to the government), then general unsecured creditors (such as bondholders).

If a Corporation Goes into Bankruptcy,_________________