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? O Treasury bonds have a very small amount of default risk, so they are not completely riskless. O Treasury bonds are completely riskless. O Treasury bonds are not completely riskless, since their prices will decline when interest rates rise.
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? O Treasury bonds have a very small amount of default risk, so they are not completely riskless. O Treasury bonds are completely riskless. O Treasury bonds are not completely riskless, since their prices will decline when interest rates rise.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text: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?
O Treasury bonds have a very small amount of default risk, so they are not completely riskless.
O Treasury bonds are 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:
In July 2009, Walmart sold 100 billion yen of five-year samurai bonds. Lead managers in the deal were Mizuho Securities, BNP Paribas,
and Mitsubishi UFJ Securities.
Who is the issuer of the bonds?
O Mitsubishi UFJ Securities
O BNP Paribas
O Walmart
What type of bonds are these?
O Corporate bonds
O Municipal bonds
O Government bonds
O O
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