Bonds that are considered as junk bonds and termed as higher yield are classified as

A. expansion debentures

B. premium debentures

C. subordinated debentures

D. ordinate debentures

Answer: Option C

Solution(By Examveda Team)

Bonds that are considered as junk bonds and termed as higher yield are classified as subordinated debentures. Subordinated debt (also known as a subordinated debenture) is an unsecured loan or bond that ranks below other, more senior loans or securities with respect to claims on assets or earnings. Subordinated debentures are thus also known as junior securities.