Why are the interest rates of Treasury bonds less than the interest rates of equivalent corporate bonds?

Question

Quizplus · Accepted Answer

Treasury bonds are considered to be risk-free because they are backed by the full faith and credit of the government, meaning investors can be relatively certain that they will receive their interest payments and principal back at maturity. In contrast, corporate bonds carry some degree of credit risk, as there is a chance the issuing company could default on its debt obligations. This perceived higher risk is reflected in the higher interest rates paid by corporate bonds compared to Treasury bonds.

Why Are the Interest Rates of Treasury Bonds Less Than