Q559
Unsecured bonds which is designated for only notes payable or all other debts are classified as
A.
designated bonds
B.
payable bonds
C.
ordinate bonds
D.
subordinated bonds
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Unsecured bonds which is designated for only notes payable or all other debts are classified as subordinated bonds. Subordinated debt is a loan or security that ranks below other loans or securities with regard to claims on assets or earnings. Subordinated debt is also known as a junior security or subordinated loan.