Frank riley just purchased a bond that is unsecured and is secondary to other unsecured bonds should the issuer declare bankruptcy. what type of bond has frank purchased?

Question

Sergio Mcmillan

Business

27 January, 14:00

Frank riley just purchased a bond that is unsecured and is secondary to other unsecured bonds should the issuer declare bankruptcy. what type of bond has frank purchased?

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Answers (2)

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Emmett · Answer 1

Frank has purchased a subordinated debenture type of bond.

Subordinated debenture is type of bond which ranks after other debts if a company falls into liquidation or bankruptcy. This type of loan is also known as a junior security.

Maximus Weber · Answer 2

The type of bond Frank has purchased is "subordinated debenture".

Other names or terms that are used for this type of bond are; subordinated debt, subordinated loan, subordinated bond, or junior debt.

Subordinated debenture is a sort of bond that refers to an unsecured and gives bondholders a claim optional to that of other assigned bondholders concerning both salary and resources.