To completely avoid the risk of default, investors can invest in Treasury bonds or A-rated corporate bonds.

Question

Quizplus · Accepted Answer

While Treasury bonds are considered very low risk because they are backed by the U.S. government, A-rated corporate bonds, although relatively low risk, still carry a higher risk of default compared to Treasury bonds. No investment outside of those backed by the full faith and credit of a government can completely avoid the risk of default.

To Completely Avoid the Risk of Default, Investors Can Invest