A bond is a fixed interest (fixed income) security that:

1. ranks below any preferred (or preference) shares and ordinary shares in the priority of payment.

2. typically pays interest semi-annually.

3. sells at a premium when its coupon rate is above the corresponding market rate.

Select one:

a. 2 and 3

b. 1 and 3

c. only 2

d. 1 and 2

e. only 3