Holders of debentures receive their payments or bonds yields only after holders of

A. registered debt holders

B. secured debt holders

C. unsecured debt holders

D. unregistered debt holders

Answer: Option B

Solution(By Examveda Team)

Holders of debentures receive their payments or bonds yields only after holders of secured debt holders. Secured debt is debt backed or secured by collateral to reduce the risk associated with lending, such as a mortgage. If the borrower defaults on repayment, the bank seizes the house, sells it and uses the proceeds to pay back the debt.