CFA Institute Sustainable-Investing Question Answer
Compared to equities, bonds most likely:
A.
have an infinite maturity.
B.
have a wider range of issuers.
C.
are inferior in the capital structure.
The Answer Is:
C
This question includes an explanation.
Explanation:
Bonds are typically considered inferior in the capital structure compared to equities, meaning bondholders are paid after senior debt but before equity holders in the event of a liquidation. (ESGTextBook[PallasCatFin], Chapter 8, Page 451)
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