U.S. Treasury securities do not have any default risk and are the best proxy measure for the risk-free rate.

Name: U.S. Treasury securities do not have any default risk and are the best proxy measure for the risk-free rate.
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Question

Quizplus · Accepted Answer

U.S. Treasury securities are considered to have no default risk because they are backed by the full faith and credit of the U.S. government. Therefore, they are commonly used as a proxy for the risk-free rate.

US Treasury Securities Do Not Have Any Default Risk and Are