Which of the Following Is Not True Regarding Specific Bond

question 123

Multiple Choice

Which of the following is not true regarding specific bond provisions?

• A)Firms might issue bonds based only on their credit worthiness as an entity.
• B)Particular collateral might back up bonds issued by a firm.
• C)Unsecured borrowing might carry senior rights or subordinated rights in the event of bankruptcy.
• D)Senior debt holders have a higher priority for payment in the event of bankruptcy than subordinated (junior) unsecured lenders.
• E)Common stockholders have a higher priority than unsecured bondholders for payment in the event of bankruptcy.

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