2. As interest rates rise, bond values , with short-term bonds reacting dramatically to the rate increase than long-term bonds. a. rise; more b. rise; less c. fall; more d. fall; less e. two of the above 3. Preferred stock differs from common stock in that a. preferred stock usually has a maturity date. b. preferred stock dividends typically change from year to year. c. preferred stock has a lower priority claim on income and assets than common stock. d. preferred stock dividends are fixed. e. All of these are correct