Question: Which one of the statements points out the most important difference between bonds and preferred stocks? Group of answer choices The interest paid to bondholders
Which one of the statements points out the most important difference between bonds and preferred stocks?
Group of answer choices
The interest paid to bondholders is a taxdeductible expense for the borrowing company, whereas dividends paid to preferred stockholders are not
Bonds generally have a longer maturity than preferred stocks
Preferred stocks are more senior than bonds
The interest from bonds is compounded more frequently than the dividends from preferred stocks
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