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. Your sister's Bond Investment

b. Your preferred stock investment

c. Both have equal probability of receiving the same amount