Bank "A" has made a loan to the Nacho Company at 6% for 10 years, and requires staying in first position of creditors. Ola Nacho Company has approached bank "B" for another loan to help fund growth. In order to offset risk, bank "B" will likely

Question 12 options:

	take a first debt position at a lower rate than bank "A
	take a subordinate debt position at a higher interest rate than bank "A"
	take a subordinate debt position at a lower interest rate than bank "A"
	take a first debt position at a higher interest rate than bank "A"