Use the information for the question(s)below.
-Why are the interest rates of U.S.Treasury notes less than the interest rates of equivalent corporate bonds?

Question

Use the information for the question(s)below. 
-Why are the interest rates of U.S.Treasury notes less than the interest rates of equivalent corporate bonds?

Quizplus · Accepted Answer

U.S. Treasury securities are widely regarded to be risk-free, meaning that investors view them as extremely safe investments. This is due to the fact that the U.S. government has a strong credit rating and is considered unlikely to default on its debt. As a result, investors are willing to accept lower interest rates on U.S. Treasury notes than they are on corporate bonds, which carry higher risk.

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