1. Types of bonds 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. Which of the following statements about Treasury bonds is the most accurate? O Treasury bonds are not completely riskless, since their prices will decline when interest rates rise. Treasury bonds have a very small amount of default risk, so they are not completely riskless. O Treasury bonds are completely riskless. Based on the information given in the following statement, answer the questions that follow: In July 2009, Hungary successfully issued 1 billion euros in bonds. The transaction was managed by Citigroup. Who is the issuer of the bonds? Hungary Bank Citigroup The Hungarian government What type of bonds are these? O Government bonds Municipal bonds O Corporate bonds