Because of fixed interest rates, there is no risk involved with holding government bonds.

Question

Quizplus · Accepted Answer

While holding government bonds does typically involve less risk than holding other types of investments, such as stocks, there is still some risk involved. One potential risk is inflation, which could cause the fixed interest rate on the bond to become less valuable over time. Additionally, if interest rates rise, the value of the bond may decrease since investors can earn higher returns on other investments.

Because of Fixed Interest Rates, There Is No Risk Involved