1. Types of bonds Aa Aa E Fixed-income securities consist of debt instruments and preferred stock. Bonds are debt securities in which a borrower promises to pay a specified interest rate and principal at a future date. The entity that promises to make the interest and maturity payments for a bond issue is called the Based on the information given in the following statement, answer the questions that follow: New York City issued a general obligation bond for a canal in 1812. It was the first formal debt instrument with a fixed repayment schedule issued by a city. What type of bonds are these? Who is the issuer of the bonds? O Municipal bonds O Treasury bonds Corporate bonds The New York City government Bank of New York Federal Reserve Bank of New York O Which of the following statements is true about bonds? An investor from Florida that invests in a municipal bond issued by the State of Michigan will pay state taxes- but not federal taxes-on the bond's coupon payments. O An investor from Florida that invests in a State of Michigan municipal bond will pay neither state nor federal taxes on the bond's coupon payments. Which of the following types of bonds has the least default risk? Municipal bonds O Treasury bonds Corporate bonds