Why do bonds with lower seniority have higher yields than equivalent bonds with higher seniority?

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Corporate Finance

ISBN: 978-0133097894

3rd edition

Authors: Jonathan Berk and Peter DeMarzo

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Question Posted: Aug 06, 2014 07:41 AM

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Why do bonds with lower seniority have higher yields than equivalent bonds with higher seniority?

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Requiring coupon payments protects the bondholders fr...View the full answer

Corporate Finance

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