Fixed-income securities consist of debt instruments and preferred stock. Bonds a

Question

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? Municipal bonds Corporate bonds Treasury bonds 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. What type of bonds are these? Government bonds Municipal bonds Corporate bonds Who is the issuer of the bonds? Mitsubishi UFJ Securities Walmart BNP Paribas

Explanation / Answer

Answer: - Treasury bonds

Treasury bonds are issued by federal govt, hence they practically do not have any default risk or least default risk among all available kind of bonds.

Bonds issued by Walmart, which is a corporate, so its a corporate bond. And as the bonds are issued by walmart, so it is the issuer of the bond. The rest are underwriters.

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