1. Subordinated bond: If a company (issuer) falls into liquidation or bankruptcy, the unsecured creditors are entitled to debt payments after priority creditors and ordinary unsecured creditors. The right of unsecured creditors to demand debt payment from the issuer is subordinate to the right of ordinary creditors, but higher than the right of holders of preferred stock or common stock, respectively.
2. Senior bond: The right of senior bond holders to demand debt payment from the issuer is equal to the right of other ordinary creditors, but higher than the right of holders of subordinated bond, preferred stock or common stock, respectively.
