5. Types of bonds Aa Aa Fixed-income securities consist of debt instruments and
ID: 2791766 • Letter: 5
Question
5. Types of bonds Aa Aa 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 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 What type of bonds are these? Who is the issuer of the bonds? O Municipal bonds O Corporate bonds Treasury bonds Federal Reserve Bank of New York O Bank of New York O The New York City governmentExplanation / Answer
The entity that promises to make the interest and maturity payments for a bond issue called the ISSUER.
2nd ques.
Municipal bonds
(since New York city issued these bonds to finance a canal project).
3rd. ques.
The NewYork city government is the issuer of bonds.
(neither Federal reserve of Bank of New York nor Bank of new york issued the bonds).