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Earlier this year, you purchased $5,000 worth of an Badger Biolabs preferred stock. At the same time, your sister purchased $5,000 of Badger Biolabs' senior
Earlier this year, you purchased $5,000 worth of an Badger Biolabs preferred stock. At the same time, your sister purchased $5,000 of Badger Biolabs' senior debt with a 5% coupon at par. The stock was rated single B. Last week the company filed for bankruptcy. Which investment has a better chance of returning at least some of capital?
A. Both have equal probability of receiving the same amount
B. Your sister's Bond Investment
C. Your preferred stock investment
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