Municipal bonds pay interest that is federally tax-free

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Reference no: EM131934302

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

Reference no: EM131934302

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