What Is a Bond's Seniority

question 79

Multiple Choice

What is a bond's seniority?

• A) the bondholder's priority in claiming assets in the event of default
• B) clauses restricting a company from issuing new debt
• C) the yield to maturity of a bond as compared to bonds of comparable rating
• D) the issue price of the bond as compared to its face value

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Definitions:

Probability Density Function

A function that represents the probability of a random variable assuming a specific value.

Uniform Distribution

A type of probability distribution where all outcomes are equally likely; any one of several outcomes has an equal chance of occurring.

Random Variable

A variable that takes on a set of possible values, each with an associated probability, representing outcomes of a statistical experiment.

Probability

A measure quantifying the likelihood that an event will occur, expressed on a scale from 0 to 1.