Yes, iron sinks in rubbing alcohol, water and in any liquid with density lower than density of iron. It would float e.g in melted lead or gold.

Why does iron float on gold but mercury sinks?

Answer: A iron floats on mercury as the density of mercury is greater than iron density. Pieces of gold sink because gold has a higher density then mercury.

Does iron float or sink?

Iron is much denser than water. A solid chunk of iron sinks, as you would expect, but an iron ship floats.