Asked by
Julia Boffa
on Dec 02, 2024
Verified
Similar to corporate bonds, U.S. treasury bonds are subject to default risk.
Default Risk
The risk that a borrower will not make the required payments on their debt obligations.
U.S. Treasury Bonds
Long-term government debt securities issued by the United States Department of the Treasury with maturity periods over 20 years, offering a fixed interest rate.
- Understand the significance and influence of bond ratings on companies and their capacity to generate funding.
- Comprehend the dissimilarities and purposes behind various bonds such as junk bonds, secured or unsecured bonds, and registered securities.
Verified Answer
MS
Learning Objectives
- Understand the significance and influence of bond ratings on companies and their capacity to generate funding.
- Comprehend the dissimilarities and purposes behind various bonds such as junk bonds, secured or unsecured bonds, and registered securities.
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