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 Treasury bonds Corporate bonds 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. Who is the issuer of the bonds? The New York City government Bank of New York Federal Reserve Bank of New York What type of bonds are these? Corporate bonds Treasury bonds Municipal bonds

Municipal bonds are the one issued by the local, state or city governments to raise funds through people. As people who are individual or corporate investors invests in these bonds and then get the tax free returns on these bonds.

Here, in the given instance,

New York City issued issued the general bond. Since issued by the city is Municipal Bond. And Government of the city issues such bonds.