U.S. Treasury bonds
A)carry no risk of default and are therefore not risky investments.
B)have constant yields to maturity and are therefore not risky investments.
C)have constant coupon rates and are therefore not risky investments.
D)are subject to fluctuations in their market prices and are therefore risky investments.

Question

Quizplus · Accepted Answer

U.S. Treasury bonds are subject to fluctuations in their market prices due to changes in interest rates, inflation expectations, and other factors. Therefore, they are considered risky investments, despite carrying no default risk.

U.S. Treasury Bonds