Bonds issued by the U.S.government:
I.are considered to be free of default risk.
II.are considered to be free of interest rate risk.
III.provide totally tax-free income.
IV.pay interest that is exempt from federal income taxes.

Question

Quizplus · Accepted Answer

U.S. government bonds are considered free of default risk because the government can print money to meet its obligations. However, they are not free of interest rate risk, and the interest is subject to federal income taxes, though some state and local taxes may be exempt.

Bonds Issued by the U.S.government