Suppose you own $1 million worth of 30-year Treasury bonds. Is this asset riskless?
b. You own $1 million worth of 90-day Treasury bills. You â??roll overâ? this investment every
90 days by reinvesting the proceeds in another issue of 90-day Treasury bills. Is this
c. Can you think of an asset that is truly riskless?
a. In theory, we consider all bonds issued by a government to be riskless, however, in practice, there are slight chances that countries default on their bonds, especially if the bond is held over a long period of time. This ...
T-Bills and risk less assets