Treasury bonds do not have default risk, but are subject to inflation risk.

Name: Treasury bonds do not have default risk, but are subject to inflation risk.
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Question

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Treasury bonds are backed by the full faith and credit of the US government, so they do not have default risk. However, they are subject to inflation risk, which means that the purchasing power of the bond's future interest payments and principal may be eroded by inflation over time.

Treasury Bonds Do Not Have Default Risk, but Are Subject