Which of the Following Is the Lowest in Priority of Claims

question 57

Multiple Choice

Which of the following is the lowest in priority of claims against a bankrupt firm?

• A) a junior mortgage bond
• B) a senior debenture
• C) common stock
• D) a subordinated debenture

---

Definitions:

Compounded Monthly

Definition: The process where interest is calculated and added to the principal amount of the deposit or loan every month.

Lump Sum Deposit

A single and typically large payment made at once rather than being divided into multiple payments over time.

Compounded Semi-Annually

This involves computing interest on the original investment and the interest that has been accrued over two periods within the same year.

Semi-Annual Contributions

Payments or deposits made into an investment or savings account twice a year.