Which of the Following Statements Is CORRECT

question 76

Multiple Choice

Which of the following statements is CORRECT?

• A)Junior debt is debt that has been more recently issued, and in bankruptcy it is paid off after senior debt because the senior debt was issued first.
• B)Subordinated debt has less default risk than senior debt.
• C)Convertible bonds have lower coupon rates than non-convertible bonds of similar default risk because they offer the possibility of capital gains.
• D)Junk bonds typically provide a lower yield to maturity than investment-grade bonds.
• E)A debenture is a secured bond that is backed by some or all of the firm's fixed assets.

---

Definitions:

Stereochemical

Pertaining to the spatial arrangement of atoms in molecules and the effect of this arrangement on chemical reactions.

Regio-

A prefix in organic chemistry indicating the region or orientation of a chemical reaction or structure on a molecule.

Stereochemical

Pertaining to the spatial arrangement of atoms within molecules and the impact of this arrangement on chemical properties and reactions.

Regio-

A prefix denoting the region or position in a molecule where a chemical reaction occurs, often used in the context of regioselectivity.