NO.PZ2023120801000114
问题如下：
Mojofon’s capital structure consists of the following:
Mojofon’s bonds
all contain a cross-default provision. If the company is to default on one of
its senior unsecured bonds:
选项：
A.
the secured bonds are likely to have full recovery.
B.
the credit loss on senior unsecured bonds will be the same as that on subordinated bonds.
C.
the subordinated bonds will rank below shareholders, who may dictate how recovery is to be distributed.
解释：
Correct Answer: A
Senior secured
bonds rank the highest in the priority of claims, and their recovery depends on
the value of the asset collateral. Since the value of asset collateral (60)
exceeds the amount of secured bonds outstanding (50), the secured bonds are
likely to have full recovery in an event of default. Senior unsecured bonds
have higher priority over subordinated bonds, which in turn have higher
priority over common equity in insolvency.
请问题目中的cross- default provision是什么意思？
