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). 

REFERENCES:

What Are Corporate Bonds?  Retrieved from https://www.investor.gov/news-alerts/investor-bulletins/what-are-corporate-bonds