Financial security in which there is no default risk and issues by U.S governments is classified as
A
U.S treasury bonds
B
mortgages
C
municipal bonds
D
corporate bonds
Correct Answer: U.S treasury bonds
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.