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 shareholder guarantor issuer Based on the information given in the following statement, answer the questions that follow: In 2010, the Toronto Hydro Corporation offered for sale $490.1 million in bonds. The bonds sold for $109.538 million with a coupon rate of 6.11% and a maturity of 5/06/2013. The bonds yield 52 basis points (1/100 of a percentage point) above the corresponding Government of Canada bond yields. What type of bonds are these? Who is the issuer of the bonds? O Corporate bonds O Government of Canada bonds O Foreign bonds Oo O The Toronto city government O Toronto Hydro Corporation The government of France Which of the following statements is true about T-bills? O When interest rates increase, prices of T-bills increase. O When interest rates increase, prices of T-bills decline. Which of the following types of bonds has the least default risk? Corporate bonds Government bonds Foreign bonds