1. Which type of bond is likely to have a price that remains fairly constant even if overall interest rates change?
a) Convertible b) Floating c) Sinking Fund d) Putable
2. All else equal, which type of bond would have the highest required return?
a) Mortgage b) Unsubordinated c) Debentures d) Trustee
3. Who gets paid first if a company goes bankrupt?
a) Common Stockholders b) Debentures c) Mortgage Bonds d) Preferred Stock