Asked by
raymond acchar
on Dec 02, 2024Verified
Treasury (federal government)securities are default and maturity risk free.
Treasury Securities
Government-issued debt instruments used to finance government spending as an alternative to taxation.
Maturity Risk
The risk that arises from the length of time until the principal amount of a fixed-income investment becomes due and payable, affecting the investment's exposure to interest rate changes.
- Identify the differences between several kinds of risk including default risk, liquidity risk, and market risk.
Verified Answer
FD
Learning Objectives
- Identify the differences between several kinds of risk including default risk, liquidity risk, and market risk.