(Solved): Montel would like to include some government bonds in his investment portfolio however, he is not s ...

Montel would like to include some government bonds in his investment portfolio however, he is not sure about the type of bonds to invest in. What statement concerning government bonds is INCORRECT? a) Canadas are relatively risk free because of the federal government's taxation powers and money printing capabilities. b) Provincial bonds typically offer the same risk and return as Government of Canada bonds. c) Since most municipal debentures have a higher degree of credit risk, the return is normally higher than on provincial or federal bonds. d) As a means of encouraging industry to stay in the province, provincial governments can guarantee a bond issued by a corporation.