Treasury notes or T-Bills are issued by federal government that's why default risk does not exist. They have highest grades risk free assets. These are safest kind of investments in the world as it is backed by federal government.
Please read about treasury bills, notes and bond from following link.
Regards
-- Umeed
On Sun, Jul 24, 2011 at 7:58 AM, (:| mani |:) <hopesustainslife1@gmail.com> wrote:
An analyst gave the following statement: "We should purchase Treasury notes because they are risk-free. Default risk is essentially non-existent." Is the analyst's statement correct? 3 Marks--
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