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Gepps Cross Industries Issues Debt with a Maturity of 25

Question 3

Multiple Choice

Gepps Cross Industries issues debt with a maturity of 25 years. In the case of bankruptcy, holders of this debt may only claim those assets of the firm that are not already pledged as collateral on other debt. Which of the following best describes this type of corporate debt?


A) a note
B) a debenture
C) an asset-backed bond
D) a mortgage bond

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