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  3. 10. which of the following statements is false? 0

10. Which of the following statements is FALSE? 0 A. In the event of default,...

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10. Which of the following statements is FALSE? 0 A. In the event of default, the assets not pledged as collateral for outstanding bonds cannot be O B. When a firm conducts a subsequent debenture issue that has lower priority than its O c. Most debenture issues contain clauses restricting the company from issuing new debt with O D. Because more than one debenture might be outstanding, the bondholder's priority in claiming used to pay off the holders of subordinated debentures until all more senior debt has been paid off outstanding debt, the new debt is known as a subordinated debenture. equal or lower priority than existing debt. assets in the event of default, known as the bond's seniority, is important

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