Asked by
Jasmyn Dominguez
on Dec 02, 2024Verified
The default risk on U.S. Government debt instruments increases with the maturity of the instrument.
Default Risk
The risk that a borrower will not make the required payments on a debt obligation, leading to a default situation.
U.S. Government Debt
U.S. Government debt, also known as sovereign debt, is the total amount of money borrowed by the Federal government through the issuance of securities by the Treasury and other federal government agencies.
- Differentiate among various risk types, including default risk, liquidity risk, and market risk.
Verified Answer
EM
Learning Objectives
- Differentiate among various risk types, including default risk, liquidity risk, and market risk.