SIE practice questionhardTreasury securities
All of the following are advantages of U.S. Treasury bonds EXCEPT:
- AExempt from state and local taxes
- BHigh market liquidity
- CNo credit risk
- DGenerally higher yields than corporate bonds✓ Correct answer
Explanation
Why D — Generally higher yields than corporate bonds
Treasuries have no credit risk, high liquidity, and are exempt from state/local tax, but usually have lower – not higher – yields than comparably-rated corporate bonds.
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