Why are Treasury Securities considered risk free, and what is the impact of default risk on interest rates?© BrainMass Inc. brainmass.com October 10, 2019, 6:08 am ad1c9bdddf
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 ...
This solution explains why treasury securities are considered risk free.