Question $18(2\mathrm{.}5$ points$)$

Which of the following regarding the reasons an investor might consider investing in corporate bonds are most accurate?

They have lower default risk than Treasuries.

They generally pay higher interest than Treasuries.

They generally offer some inflation protection via the semi$-$annual payment of coupons.

They offer higher security of principal than equities.

Convertible bonds may participate if the company's shares rise in value.

$2,4$ and $5.$

$1\mathrm{.}2$ and $3.$

$3$ and $4.$

$2$ and $4.$