11. Which of the following does NOT describe general differences between bonds and common equity? a. The cash flows for bonds are more predictable than the cash flows for stocks. b. Bond investors have priority over equity investors in the event of bankruptcy. c. Equity investors have a greater preference for risk than bond investors. d. Equity securities typically have a finite life while bond securities typically have an indefinite life. 12. Which of the following statements regarding bond yields and prices is NOT true? a. The current yield decreases as market interest rates increase. b. If the coupon rate is higher than the yield to maturity, the bond sells at a premium. c. An increase in market interest rates reduces the price of existing bonds. d. If the bond sells at a premium, the current yield is greater than the yield to maturity