21. Assume the securities are all issued by the same firm. From the investor's standpoint, rank the following securities in order of increasing risk (the number of the least risky security is placed first, or to the left, in the answer set). (1) (2) (3) (4) Preferred stock. Income bonds. Convertible preferred stock. Mortgage bonds. a. 1, 2, 3, 4 b. 4, 1, 2, 3 c. 4, 1, 3, 2 d. 4, 2, 1, 3 e, 4, 2, 3, 1 22. A firm plans to sell $100 million of 20-year bonds to raise capital for expansion. Which of the following provisions, if it were included in the bond's indenture, would tend to raise the coupon interest rate over what it would be if the provision were not included? a. A call provision under which the firm may call the bonds for redemption after 5 years. b. Provision for a sinking fund, where a set percentage of the bonds must be called for redemption at par each year. c. A restrictive covenant which states that the firm's current ratio must always exceed 2.0 d. A pledge of real property as security for the bonds. e. A provision under which the bondholders may, at their option, turn the bond in to the company and receive the bond's face value; that is, the bond is redeemable at par at the holder's option