Suppose you own $1 million worth of 30-year Treasury bonds. Is this asset riskless?
You own $1 million worth of 90-day Treasury bills. You "roll over" this investment every 90 days by reinvesting the proceeds in another issue of 90-day Treasury bills. Is this investment riskless?
Can you think of an asset that is truly riskless?© BrainMass Inc. brainmass.com December 20, 2018, 4:53 am ad1c9bdddf
If you own $1M worth of 30-year Treasury bonds, it is definitely not riskless. There must be a liquidity premium associated with this. This is because you cannot realize the face value ...
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