. 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?

Treasury bonds are not completely riskless, since their prices will decline when interest rates rise.

Treasury bonds are completely riskless.

Treasury bonds have a very small amount of default risk, so they are not completely riskless.

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.

Who is the issuer of the bonds?

Federal Reserve Bank of New York

The New York City government

Bank of New York

What type of bonds are these?

Treasury bonds

Municipal bonds

Corporate bonds