A bondholder of an unsecured bond is entitled to ________ if the organization is unable to pay its debt.Multiple Choicecollateralnothingownershipdividendsstock
Question
A bondholder of an unsecured bond is entitled to ________ if the organization is unable to pay its debt.Multiple Choicecollateralnothingownershipdividendsstock
Solution
The correct answer is "nothing".
An unsecured bond is a type of bond where the bondholder does not have a claim on any specific assets if the issuing organization is unable to pay its debt. This means that if the organization defaults on its payments, the bondholder is not entitled to any collateral, ownership, dividends, or stock. They essentially risk losing their entire investment, hence the term "unsecured".
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