1. Which statement is correct with regard to bonds with warrants:

The exercise price of the warrants always remains constant throughout the life of the warrants

The warrants cannot be detached from the bond and sold separately

Warrants must be exercised within 2 years

Warrants bring in additional cash money when they are exercised

None of the above

2. Which of the following statements is correct regarding preferred stock.

It has preference over bonds in case of bankruptcy

It has preference over common stock in case of bankruptcy

It has preference over notes payable in case of bankruptcy

Its dividend rate is guaranteed

None of the above