10. How does the yield-to-maturity on a bond differ from the coupon yield or current yield?

11. Under what conditions will a bonds current yield be equal to its yield-to-maturity?

12. In what ways is preferred stock similar to long-term debt? In what ways is it similar to common stock?

13. Explain why bondholders often prefer a sinking fund provision in a bond issue.

14. Explain what is meant by interest rate risk.

15. Explain how a bond can be classified as a fixed-income security when the yield-to- maturity can fluctuate significantly over time, depending on the market price of the bond.