In the event of default, _____________ debt holders must give preference to more __________ debt holders in the priority of repayment distributions.A) Short-term; long-term.B) Long-term; short-term.C) Senior; junior.D) Senior; subordinated.E) Subordinated; senior.

Question

In the event of default, _____________ debt holders must give preference to more __________ debt holders in the priority of repayment distributions.A)  Short-term; long-term.B)  Long-term; short-term.C)  Senior; junior.D)  Senior; subordinated.E)  Subordinated; senior.

Zybrea Knight · Accepted Answer

Final Answer : E, Explanation :  Subordinated debt holders must give preference to more senior debt holders in the priority of repayment distributions. This means that in the event of default, those holding subordinated debt are paid after senior debt holders.

In the event of default, ___ debt holders must give preference to more debt holders in the priority of repayment distributions.

A) Short-term; long-term.
B) Long-term; short-term.
C) Senior; junior.
D) Senior; subordinated.
E) Subordinated; senior.

Definitions

Learning Objectives

Learning Objectives

Related questions