Vidyalelo
Commerce · Q591

Financial Management

Graduate and Post Graduate · Commerce · question 591

Q591

Bonds issued by local and state governments with default risk are

A.
municipal bonds
Answer
B.
corporation bonds
C.
default bonds
D.
zero bonds

Answer: Option A

Solution

Answer: Option A
Solution:
Bonds issued by local and state governments with default risk are municipal bonds. Municipal bonds are loans investors make to local governments.