1. Which of the following is true of bondholders as opposed to stockhoders?
a. Bondholders are lenders to the corporation rather than part owners of the corporation
b. Bondholders receive dividends whenever the corporation declares a dividend
c. Once a bondholder buys a bond, she must hold it until maturity
d. Bond prices in the market are always equal to the face value of $100
2. Which statement is true, comparing bondholders in a corporation to stockholders of a corporation?
a. Both bondholders and stockholders are owners of the corporation
b. bondholders are legally entitled to interest as part of the bond contract
c. stockholders are entitled to dividends each year as matter of contract
d. generally, stockholders have less risk than bondholders