Task: Class Definition Understanding (ontology: Business_Finance/Financial_Industry_Business_Ontology)

Which of the following definitions best describes 'tradable debt instrument'?

A. security that is not transferable to another party
B. a debt instrument that is also a security, i.e., that can be bought and sold by the holder
C. debt instrument whereby one party extends money or credit to another party (or parties) with the understanding that the borrowed money will be repaid according to the terms of the contract
D. The subordinated (also known as equity) CDO tranche is the most junior tranche in the CDO issue. If there are defaults or the CDO's collateral otherwise underperforms, scheduled payments to senior and mezzanine tranches take precedence over those to subordinated/equity tranches.

Answer: a debt instrument that is also a security, i.e., that can be bought and sold by the holder