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Bond prices and interest rates move inversely. When market rates rise, newly issued bonds carry higher coupons, so an existing fixed-coupon bond must fall in price for its yield to stay competitive. This is interest-rate (market) risk, and it's strongest for long-maturity bonds.
Common stock dividends are never guaranteed — they're declared by the board of directors when the company chooses to pay them. Debt comes first: bondholders are paid interest before any dividend goes to shareholders. And dividends are paid from after-tax profits, so they're not tax-deductible to the company.
In a liquidation, secured creditors are paid first, because their claim is backed by specific collateral. The general order is: secured debt → unsecured/general creditors → subordinated debt → preferred stock → common stock. Debt before equity, and secured before unsecured, so secured bondholders rank highest here.
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