I have some problems with understanding a preferred stock and a perpetuity bond. Both have a fixed interest rate and both will never actually repay the notional amount. The only difference, is that one is equity and one is considered a loan.
Therefore, if I understand correctly, if there is no dividend （due to poor performance）, a preferred stock will not pay dividend, while the bond will. But other than that, it's the same?
Is this correct? Or am I missing something?