The preferred stock of financially strong firms sometimes sells at lower yields (YTM) than the ordinary bonds of those firms. For weaker firms, however, the preferred stock has a higher yield (YTM). What might explain the pattern? For financially strong firms: For weaker firms: Suppose Hertz is considering two issues of 10-year coupon bonds. One issue will be a callable bond, while the other will be an ordinary bond. If both have the same coupon rate, which one should sell at a higher price? Suppose Hertz is considering two issues of 10-year coupon bonds. One issue will be a callable bond, while the other will be an ordinary bond. If both issues are sold at face value, which one must have a higher coupon rate