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 types of bonds have the least default risk?

Treasury bonds

Municipal bonds

Corporate bonds

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

The Hungarian government

Citigroup

What type of bonds are these?

Municipal bonds

Government bonds

Corporate bonds