10) Bonds that have an option exercisable by the issuer to retire them at a stated dollar amount prior to maturity are known as: A) Serial bonds. B) Sinking fund bonds. C) Callable bonds. D) Convertible bonds. E) Junk bonds.

11) Secured bonds: A) Are the same as sinking fund bonds. B) Are called debentures. C) Have specific assets of the issuing company pledged as collateral. D) Are subordinated to those of other unsecured liabilities. E) Are backed by the issuer's bank.

12) The contract between the bond issuer and the bondholders identifying the rights and obligations of the parties, is called a(n): A) Mortgage. B) Debenture. C) Installment note. D) Mortgage contract. E) Bond indenture.

13) Bonds that mature at more than one date with the result that the principal amount is repaid over a number of periods are known as: A) Registered bonds. B) Bearer bonds. C) Sinking fund bonds. D) Serial bonds. E) Callable bonds. 1

4) Promissory notes that require the issuer to make a series of payments consisting of both interest and principal are: A) Debentures. B) Discounted notes. C) Indentures. D) Investment notes. E) Installment notes.