Convertible securities have the same upside potential as the underlying asset.

	True
	False

Irene purchased a $1,000 par 5.8% convertible bond 10 years ago for $1,050. Three years ago, Irene exercised the conversion option and traded the bond for 25 shares of preferred stock. At the time of the conversion, the preferred stock had a market value of $50 per share. The price of the preferred stock has risen to $55 per share, and Irene is considering selling the stock. What is the cost basis for the disposal of the preferred stock shares?

	$1,050
	$1.375
	$1,150
	$1,000
	$1,250

The major national online brokerage firms do not have an inventory of bonds themselves, so will not try to see you bonds that they own.

	True
	False

Types of municipal bonds include all of the following EXCEPT

	treasury notes.
	general obligation bonds.
	revenue bonds.
	private purpose bonds.
	all of the above are types of municipal bonds

Stripped bonds are discounted bonds.

	True
	False