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Management · Q955

Financial Management

Graduate and Post Graduate · Management · question 955

Q955

Financial security in which there is no default risk and issues by U.S governments is classified as

A.
U.S treasury bonds
Answer
B.
mortgages
C.
municipal bonds
D.
corporate bonds

Answer: Option A

Solution

Answer: Option A
Solution:
Financial security in which there is no default risk and issues by U.S governments is classified as U.S treasury bonds. Treasury bonds are U.S. government debt securities with a maturity range between 10 and 30 years and which are marketable and set at a fixed interest rate. T-bonds pay semiannual interest payments until maturity, at which point the face value of the bond is paid to the owner.