CFA Practice Question

There are 490 practice questions for this study session.

CFA Practice Question

An analyst is evaluating various debt securities issued by a company. The type of security most likely to yield the lowest recovery in a bankruptcy is a ______.
A. debenture bond
B. collateral trust bond
C. mortgage bond
Explanation: A debenture bond is unsecured and would be expected to recover less should the company file for bankruptcy, while mortgage and collateral trust bonds are secured by real property.

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