Debentures that are considered as junior bonds as compared to debentures and mortgage bonds are classified as
A. subordinated debentures
B. ordinate debentures
C. expansion debentures
D. premium debentures
Answer: Option A
Solution (By Examveda Team)
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.This Question Belongs to Management >> International Finance And Treasury
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