Why are the interest rates of Treasury bonds less than the interest rates of equivalent corporate bonds?

Question

Quizplus · Accepted Answer

Treasury bonds are considered to be risk-free because they are backed by the government. Therefore, investors are willing to accept a lower interest rate in exchange for the perceived low risk. In contrast, corporate bonds carry more risk because companies can default on their payments, making them less attractive to investors and requiring a higher interest rate to compensate for the added risk.

Why Are the Interest Rates of Treasury Bonds Less Than