1. Which one of the following is a false statement?
A Mortgage is unsecured debt with original maturity less than 10 years
B A sinking fund is managed by a trustee for early bond redemption
C Callable bond may be repurchased by issuer at specifed call price during call period
D A debenture is unsecured
E A collateral is secured by financial securities
2. Which one of the following is a false statement?
A Municipal bonds are issued by state and local governments
B Municipal bonds pay interest that is federally tax-free
C Treasury bonds are considered to be free of default risk
D Municipal bonds are considered to be free or default risk
E Floating-rate bonds have a variable coupon, depending on some index value