Which one of the following has the highest level of default risk?

Question

Quizplus · Accepted Answer

Municipal bonds have the highest level of default risk compared to other options listed because they are issued by local governments and agencies that may face financial difficulties or revenue shortfalls, whereas U.S. Treasury bonds and T-bills are backed by the full faith and credit of the U.S. government and have virtually no default risk. Series I and EE bonds are also issued by the U.S. government and have low default risk.

Which One of the Following Has the Highest Level of Default