A corporate bond trading at below par will have

Select one:

1. a current yield lower than the equivalent government maturity.
2. a lower yield to maturity than the coupon rate.
3. the same yield it had when it was issued.
4. a higher yield to maturity than the coupon rate.

4. The difference between common and preferred stock is that preferred stock

Select one:

1. may or may not receive dividends.
2. has predictable income and more safety.
3. has greater potential for capital appreciation.
4. is issued more frequently than common stock.