1. The price quotations of Treasury bonds in the Wall Street Journal show an ask price of 104:32 and a bid price of 104:16. As a buyer of the bond, what is the dollar price you expect to pay?
A. $1,048.00
B. $1,042.50
C. $1,044.00
D. $1,041.25
E. $1,040.40
2. Which one of the following statements is TRUE about preferred stocks?
A. it never receives dividends in arrears
B. it never has a preference to dividends over common stockholders
C. it can be cumulative
D. it has equal rights to common stock