Treasury bonds are subject to ________ risk but are free of ________ risk.

Question

Quizplus · Accepted Answer

Treasury bonds are issued by the government and are considered to be free of default risk. However, they are subject to interest-rate risk, which means that their value can fluctuate depending on changes in the overall interest rate environment. Treasury bonds are not subject to underwriting risk, as they are directly issued by the government and do not require underwriting services from investment banks.

Treasury Bonds Are Subject to ________ Risk but Are Free