Which of the following bond mutual funds has both the lowest default risk and interest rate risk?

Question

Quizplus · Accepted Answer

T-bills (Treasury bills) have the lowest default risk and interest rate risk compared to other bond mutual funds listed. They are issued by the U.S. government and are considered risk-free investments. Short-term federal bonds may also have low default risk, but they may be exposed to interest rate fluctuations. Short-term corporate and high-yield bonds have higher default risk and interest rate risk.

Which of the Following Bond Mutual Funds Has Both the Lowest