Who is the issuer of the bonds? Citigroup   The Hungarian government   Hungary Bank     What type of bonds are these? Government bonds   Corporate bonds   Municipal bonds

International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
Chapter18: Long-term Debt Financing
Section: Chapter Questions
Problem 2ST
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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, Hungary successfully issued 1 billion euros in bonds. The transaction was managed by Citigroup.
 
Who is the issuer of the bonds?
Citigroup
 
The Hungarian government
 
Hungary Bank
 
 
What type of bonds are these?
Government bonds
 
Corporate bonds
 
Municipal bonds
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