1. If a company is expected to go bankrupt in 5 years, would you rather hold bonds issued by the company, or equity? Which is better, and why?

2. True or false? Explain:

"Shorter term bonds have a higher volatility than long-term bonds but only during & right bfore a recession."

3. True or false? Explain:

"The return of a bond is = to the rate of capital gain"