Why Are Preferred Shares Generally Considered More Risky Than Bonds

question 25

Multiple Choice

Why are preferred shares generally considered more risky than bonds?

• A)They have a lower priority on assets than bonds in the event of bankruptcy
• B)They lack the assurance of a bond's contracted for return of principal
• C)They typically have higher yields than bonds
• D)Both a and b
• E)All of the above

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