Treasury bond investors are exposed to:

Question

Quizplus · Accepted Answer

Treasury bond investors are generally not exposed to credit risk since they are backed by the US government. However, they are exposed to price risk, which can occur if interest rates rise and the bond's value decreases. They are also exposed to reinvestment risk, which is the risk that interest rates will decline when the bond matures and the investor has to find a new investment with lower returns. Therefore, the correct answer is D, as treasury bond investors are exposed to both price risk and reinvestment risk.

Treasury Bond Investors Are Exposed To