Which One of the Following Is an Unsecured Bond That

question 107

Multiple Choice

Which one of the following is an unsecured bond that has a higher claim on a firm's assets than other unsecured bonds?

• A)plain vanilla bond
• B)subordinated debenture
• C)refunded bond
• D)senior debenture
• E)collateral trust bond

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Definitions:

Incremental Value

The additional value or benefit gained from undertaking a new project or investment, compared to not doing it.

Cash Deal

A type of financial transaction where the payment for goods or services is made in cash at the time of the deal, without using credit.

Incremental Value

The additional value generated by undertaking a particular action, such as an investment or project.

Shares Outstanding

The total number of a company's shares of stock that are owned by shareholders, including both public investors and company officers or insiders.