in a bankruptcy which of the terms below best describes the priority of the claims of...
in a bankruptcy which of the terms below best describes the priority of the claims of unsecured or subordinated debt holders when compared to secured or collateralized debt holders
A.HIGHER
B. EQUAL
C. NONE ARE CORRECT
D.LOWER
Homework Answers
D. LOWER
Explanation: In case of bankruptcy or liquidation, the claims of secured debt holders are paid in priority to that of the unsecured or subordinated debt holders because the debt of secured debt holders is secured by creating a charge/mortgage on the assets.
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