What might be called an acid test of the reliability of a bond is a
satisfactory answer to the following questions:
(1) How many times on the average have interest charges
been earned annually in the last five years?
(2) For how many years has the corporation paid full
interest on its funded debt without default?
(3) Is the bond I intend buying followed by other
strong bonds for preferred and common stocks?
(4) What is the record of dividends paid on its
preferred and common stocks during the past seven
years?