We assign a very low probability of default to the U.S.Treasury and thus assume that all Treasury bills will be paid in full at maturity and thus have a zero default premium.

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This statement is true. The U.S. Treasury is considered one of the safest borrowers in the world, with the ability to print its own currency and the backing of the U.S. government. As a result, the risk of default on its debt is extremely low, and investors generally assume that all Treasury bills will be paid in full at maturity without the need for a default premium.

We Assign a Very Low Probability of Default to the U.S.Treasury