4. Terminology (S13.2–S13.3) Fill in the blanks, using the following terms: floating rate, common stock, convertible, subordinated, preferred stock, senior, warrant.

a. If a lender ranks behind the firm’s general creditors in the event of default, his or her loan is said to be .

b. Interest on many bank loans is based on a of interest.

c. A(n) bond can be exchanged for shares of the issuing corporation.

d. A(n) gives its owner the right to buy shares in the issuing company at a predetermined price.

e. Dividends on cannot be paid unless the firm has also paid any dividends on its .