Question

dit View History Bookmarks People Tab Window Help nline Funny Momen Illinois State University : FIL 24 MindTap - Cengage Learning X x + х engage.com/static/nb/ui/evo/index.html?deploymentld-59051228932336980530062380&elISBN-9780357114 CENGAGE MINDTAP Ch 07: Assignment- Bonds and Their Valuation Back to Assignment Keep the Highest: /3 Attempts: 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? Treasury bonds are completely riskless. Treasury bonds have a very small amount of default risk, so they are not completely riskless O Treasury bonds are not completely riskless, since their prices will decline when interest rates rise. 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 foxed repayment schedule issued by a city. 1 Who is the issuer of the bonds? O The New York City govermment OFederal Reserve Bank of New York OBank of New York WSDD X

Answer 1

Part 1:
The third option is correct
Treasury bonds are not completely risk less because their prices are affected by change in interest rates

Part 2:
Issuer of the bonds is: The New York City government

Part:
Treasury bonds
As the bonds are issued by the New York City government