FINC 331 Please respond to Mickey on bonds
didn’t know too much about corporate bonds prior to this class; however, what I found interesting is that it’s essentially like a loan that the company promises to pay back, plus the interest. However, if the company goes into bankruptcy then the bondholders may not get paid back in a timely manner, but they will have a claim on the company’s assets. The bondholders will then be placed by priority, which is determined by what type of bond it is (secured, senior unsecured, or junior unsecured).
What Are Corporate Bonds? Retrieved from https://www.investor.gov/news-alerts/investor-bulletins/what-are-corporate-bonds