The debentures that are considered as junior bonds as compared to debentures and mortgage bonds are classified as _________?
Correct answer: A. subordinated debentures
- A. subordinated debentures
- B. ordinate debentures
- C. expansion debentures
- D. premium debentures
Explanation
Subordinated debentures rank below senior debentures and mortgage bonds in the repayment order if the issuer defaults. Their junior position makes them riskier than senior debt.
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