The yield to investors on Treasury bonds reflects the risk-free rate because these bonds are virtually free from credit (default)risk.

Name: The yield to investors on Treasury bonds reflects the risk-free rate because these bonds are virtually free from credit (default)risk.
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Treasury bonds are issued by the U.S. government, which is considered to have virtually no risk of default, making their yield a benchmark for the risk-free rate in financial markets.

The Yield to Investors on Treasury Bonds Reflects the Risk-Free