- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 47. Fundamentals of Credit Analysis
- Subject 4. Credit Analysis
CFA Practice Question
Which statement is false about bondholders?
A. They share the growth of the company.
B. They bear the downside risk in the event of default.
C. Compared to equity-holders they have a priority claim on cash flow and assets.
Explanation: In contrast, equity-holders have almost unlimited upside opportunity.
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