borrowers (such as corporations) can issue debt with different seniority rankings. If a company has senior unsecured bonds and second lien debt in its capital structure, which one ranks higher with respect to the priority of claims?

a) Both are equal in terms of priority.

b) The second lien debt ranks higher than senior unsecured bonds because of its secured position.

c) The senior unsecured bonds rank higher than the second lien debt because it is senior debt