Which of the following statements about Treasury bonds is the most accurate? Treasury bonds are completely riskless. Treasury bonds have a very small amount of default risk, so they are not completely riskless. Treasury bonds are not completely riskless, since their prices will decline when interest rates rise. 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. Who is the issuer of the bonds? Walmart BNP Paribas Mitsubishi UFJ Securities What type of bonds are these? Municipal bonds Corporate bonds Government bonds
1. Treasury bonds are not completely riskless, since their prices will decline when interest rates rise.
3. Corporate bonds
1. Indeed even though Treasury bonds have a very low risk rating, they are not completely risk-less. They have a very low risk rating because they will always be honoured (US T - bonds that is) and so that eliminates the default risk. However, they are still exposed to maturity risk as well as inflation risk for the most part. This means that as interest rates rise therefore, their prices drop making them just a little but risky.
2. Walmart issued the bonds making them the issuer. The rest of the names are Underwriters.
3. Since the bonds were issued by a Corporation being Walmart, the bonds are Corporate Bonds.
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The entity that promises to make payments on the bond is the entity that issued the bond and they are therefore known as the Bond Issuer.
1. c. Corporate bonds
When a private company issues bonds, these bonds are known as Corporate Bonds. They often offer the most return of the 3 options as they are the riskiest.
2. b. Walmart
Walmart are the issuers of the bond. The rest are Lead Managers who are often Investment banks who help in the facilitation of Bond Issuance.
3. a. When interest rates increase, the prices of U.S. Treasuries decline.
Bond prices and interest rates have an inverse relationship. This is because of the fixed interest payment that bonds offer which can either be attractive or not to investors depending on market rates. For instance, when interest rates are high, other investment vehicles will offer more returns than bonds and so people will divest from them which will reduce their price.
4. c. Treasury bonds
US Treasury and indeed Government bonds on average are the least riskiest of the options listed as they are backed by the full weight and faith of the central government and all its assets. If all else fails, the Central Government could simply print more money to pay off the bonds.
The type of error is Option B: A collective noun is given a plural verb. The revision that fixes this error is Option B: The committee debates funding carefully.
In American English collective nouns can be either plural or singular, it depends on the context and whether the actors who are part of the committee in this instance are acting in unison at doing something, or all participating to accomplish the same goal. In this case it is a collective noun acting in the singular because the members of the committee are all debating together, it is presumed at the same time and in the same space in this sentence. Therefore the verb should be in the singular form "The committee debates." Other nouns that are collective are jury, family, and team, for example.
“Some deal with emotional, mental, and even physical disturbances within one self. When I was only 16 years of age, two days after my birthday in the year 2002 I found myself saddened by my grandmother’s death. The doctor told my family members and me that grandma wasn’t going to make it through and recover like we had thought. What seems saddening is that I was the last person to know of this horrendous news. I suppose my family was trying to protect me by shielding my eyes to the truth of the matter.”
This is a small fracture of your story but transformed in a way that the ideas flow more smoothly. If you want me to keep editing this story for you I’d be happy to help 🙂