Read each of the following statements carefully and explain briefly why you would agree or disagree with it. Give specific reasons for your answers. 1. Annuities where the payments occur at the end of each time period are called ordinary annuities, whereas annuities due refer to annuity streams with payments occurring at the beginning of each time period. Both the present value and the future value of an annuity due is smaller than those of an ordinary annuity respectively. 2. Everything else being the same, a bond with floating coupon rate issued by a company is more likely to trade at or near par than a standard fixed coupon rate bond issued by the same company. 3. Bond ratings issued by DBRS, and others specifically focus on price volatility of such bonds. 4. Debt can be subordinated to equity and therefore a debt holder should expect a higher rate of return than an equity holder