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: In July 2009, Hungary successfully issued 1 billion euros in bonds. The transaction was managed by Citigroup. What type of bonds are these? Municipal bonds Corporate bonds Government bonds Who is the issuer of the bonds? Citigroup Hungary Bank The Hungarian government Which of the following statements is true about bonds? The interest payments from municipal bonds are not exempt from federal taxes. The interest payments from municipal bonds are exempt from federal taxes. Which of the following types of bonds has the least default risk? Treasury bonds Municipal bonds Corporate bonds