CFA Practice Question

There are 266 practice questions for this study session.

CFA Practice Question

In the event of bankruptcy, bondholders of ______ will get paid first.
A. a senior unsecured bond which is due in 10 years
B. a senior unsecured bond which is due in 10 days
C. They will have the same pro rata claim and the two bonds are treated as one class.
Explanation: This provision is referred to as bonds ranking pari passu in right of payment.

User Contributed Comments 1

User Comment
Sevigny Don't you also have rankings as to when the bonds were issued? Older bond issues would have priority over more junior, no?
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