Which of the following statements correctly describe differences between preferred stock and long-term bonds?
(1) Preferred stock is more risky for the investor than long-term bonds issued by the same company.
(2) The market price of preferred stock fluctuates more than the market price of long-term bonds.
(3) Long-term bonds usually have a longer maturity than preferred stock.
(4) Preferred stock pays a fluctuating dividend, while long-term bonds pay a fixed rate of interest.
- (1) and (2) only
- (3) and (4) only
- (1), (2), and (4) only
- (2), (3), and (4) only