Long-term U.S. government bonds have:
A) Interest rate risk
B) Default risk
C) Market risk
D) None of the above

Question

Quizplus · Accepted Answer

Long-term U.S. government bonds are subject to interest rate risk, which means that their value can decrease if interest rates rise. However, they do not have default risk as they are backed by the full faith and credit of the U.S. government. They also have relatively low market risk compared to other types of investments.

Long-Term U.S. Government Bonds Have