Treasury bonds have provided a higher historical return than Treasury bills,which can be attributed to:
A) greater default risk.
B) a higher level of unique risk.
C) greater price risk due to longer maturities.
D) the fact that they are less frequently traded than bills.

Question

Quizplus · Accepted Answer

Treasury bonds have longer maturities compared to Treasury bills, which makes them more exposed to price risk due to changes in interest rates. However, with that higher risk comes the potential for higher returns.

Treasury Bonds Have Provided a Higher Historical Return Than Treasury