U.S. Treasury securities are considered to carry no risk spread because:
A) They are the closest thing to default-risk free that an investor can obtain
B) The prices of U.S. Treasury bonds never change
C) The yields on U.S. Treasury bonds never change
D) The yields on U.S. Treasury bonds are zero

Question

Quizplus · Accepted Answer

U.S. Treasury securities are considered to carry no risk spread because they are backed by the full faith and credit of the U.S. government, meaning they are the closest thing to default-risk free that an investor can obtain.

US Treasury Securities Are Considered to Carry No Risk Spread