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?