Which one of the following statements is correct concerning bond classifications?

Select one:

A. A note is a bond which has an original maturity date longer than 10 years.

B. A mortgage security is a bond issued solely by a home builder.

C. A debenture is a long-term bond secured by the fixed assets of a firm.

D. A callable bond can be repurchased by the issuer prior to the initial maturity date.

E. A subordinated bond receives preferential treatment over all other bonds in a bankruptcy.