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:

Subaccounts

Smaller, specific accounts categorized under a main account, used to organize and track financial information in greater detail.

QBO

Stands for QuickBooks Online, which is an accounting software designed to manage sales, expenses, and keep track of daily business transactions.

Liabilities

Financial obligations or debts owed by a business to outside parties, which must be settled over time through the transfer of economic benefits.

Equity Section

Part of a company's balance sheet that represents the owners' share of the corporation, including retained earnings and issued stock.