Which of the following statements about corporate bonds is true?

I. Payment of interest takes precedence over payment of dividends.

II. All bonds are treated equally if bankruptcy occurs.

III. Payment of cash dividends takes precedence over interest payments on corporate bonds.

IV. The duration of a short term bond should be higher than the duration of a longer term bond.

V. Interest paid to investors on corporate bonds is federal tax exempt.

I only

II and IV only

III and V only

I, III and IV only

I, II, and III