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Debentures that are considered as junior bonds as compared to debentures...

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Debentures that are considered as junior bonds as compared to debentures and mortgage bonds are classified as

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Correct Answer: Option A
Debentures that are considered as junior bonds as compared to debentures and mortgage bonds are classified as subordinated debentures. Subordinated debenture is a bond classified lower than more senior debt in the event of a default. This means that the holders of more senior securities are paid first, before any residual funds are made available to the holder of the subordinated debenture.
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