Your question is Debt Hierarchy in Capital Structure. Take a moment with it on the right.
Talk me through your thinking if you like. When you're confident, submit your answer and I'll grade it like a real screen (7/10 or better passes).
You're discussing how a company's capital structure affects risk, recovery, and investor outcomes. A senior banker wants to know whether you can clearly explain where different debt instruments sit in the stack and why that matters.
What is the hierarchy of debt in a capital structure?
