Which one of the following is a false statement?

		A corporate callable bond gives its issuer the right to buy back the bonds
		U.S. treasury debt with a four year maturity is referred to as a treasury note.
		A corporate convertible bond gives its holder the right to exchange it for a specified number of the company's non-convertible bonds
		Preferred share owners have preferrence to unpaid dividends over common share owners

Which of the following statements about mortgage-backed securities is FALSE?

		When you buy a mortgage-backed security, you are getting a share of the cash flows from many mortgages.
		The process of securitizing mortgages into mortgage-backed securities has helped to lower interest rates on mortgages.
		You can buy different tranches of mortgage-backed securities which vary in riskiness by giving the safe mortgages to the safe tranche and risky mortgages to the risky tranche.
		Mortgage-backed securities are one type of securitized debt. Other types of debt have been securitized as well.

Assume you purchased 400 shares of XYZ common stock on margin at $33.333 per share from your broker. If the initial margin is 60% and the maintenance margin is 30%, the amount you put up is _________.

		$20,000
		$12,000
		$8,000
		$15,000

The maximum possible gain for buying on margin and for short selling is theoretically unlimited.

True

False

In a short sale, the short seller must pay the original lender of shares the value of the share's dividend payments?

True

False