Subordination Clauses in Bond Indentures

question 2

Multiple Choice

Subordination clauses in bond indentures

• A) may restrict the amount of additional borrowing the firm can undertake.
• B) are sometimes referred to as "me-first" rules.
• C) provide higher priority to senior creditors in the event of bankruptcy.
• D) all of these are true.
• E) both b and c are true.

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