Which of the Following Is Incorrect in Relation to Debt

question 57

Multiple Choice

Which of the following is incorrect in relation to debt recovery rates?

• A)Macroeconomic factors are found to be significant in explaining recovery rates on defaulted bonds.
• B)Macroeconomic factors are found to be insignificant in explaining recovery rates on defaulted bonds.
• C)Senior securities tend to have higher recovery rates than subordinated securities.
• D)Industrial revenue bonds tend to have higher recovery rates than subordinated securities.

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