U.S. Treasury bonds have almost zero default risk but are subject to inflation risk.

Name: U.S. Treasury bonds have almost zero default risk but are subject to inflation risk.
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Question

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U.S. Treasury bonds are backed by the full faith and credit of the U.S. government, making them almost free of default risk. However, they are subject to inflation risk because inflation can erode the purchasing power of the interest and principal payments they provide.

US Treasury Bonds Have Almost Zero Default Risk but Are