Question: 1(a). (TRUE or FALSE?) The variable rate on the bonds protects investors from much of the interest rate risk inherent in fixed-rate bonds. 1(b). (TRUE

1(a). (TRUE or FALSE?) The variable rate on the bonds protects investors from much of the interest rate risk inherent in fixed-rate bonds.

1(b). (TRUE or FALSE?) Common stockholders receive their dividends before preferred stockholders.

1(c). (TRUE or FALSE?) Junk bonds are usually not trash and they are simply riskier than the bonds with an investment grade ratings.

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