US Treasury Securities Are Considered to Carry No Risk Spread

question 108

Multiple Choice

U.S. Treasury securities are considered to carry no risk spread because:

• A) they are the closest thing to default-risk free that an investor can obtain.
• B) the prices of U.S. Treasury bonds never change.
• C) the yields on U.S. Treasury bonds never change.
• D) the yields on U.S. Treasury bonds are always low.

---

Definitions:

Physician

A medical professional trained to diagnose, treat, and prevent illnesses, and provide patient care.

Month

A unit of time, typically used in calendars, that roughly corresponds to the period required for the moon to orbit the Earth.

Fontanels

Membranous regions found in the skull of infants; permit the skull to move through the birth canal.

Newborn Baby

An infant who is within hours, days, or up to a few weeks from birth.