Explore BrainMass

Explore BrainMass

    Why are Treasury Securities considered risk free?

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Why are Treasury Securities considered risk free, and what is the impact of default risk on interest rates?

    © BrainMass Inc. brainmass.com December 16, 2022, 10:16 am ad1c9bdddf

    Solution Preview

    Treasury securities are considered risk-free due to their unique elements. Treasury securities are also known as T-bills. A T-bill is a short-term security (Issued for one year or less) in varying denominations. They are risk-free because T-bills are issued and backed by the United ...

    Solution Summary

    This solution explains why treasury securities are considered risk free.