Dividends paid by a corporation to its stockholders are tax deductible by the corporation, but interest paid on bonds is not tax deductible.

True or false?

Junk bonds are attractive to investors because they carry a high rate of interest and are convertible into a specified number of shares of capital stock.

True or false?

The underwriter guarantees the issuing corporation a specific price for the entire bond issue and sells the bonds to the investing public at a higher price.

True or false?