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SIE: Debt Securities
SIE practice questionhardTreasury securities

All of the following are advantages of U.S. Treasury bonds EXCEPT:

  1. AExempt from state and local taxes
  2. BHigh market liquidity
  3. CNo credit risk
  4. DGenerally higher yields than corporate bonds✓ Correct answer
Explanation

Why DGenerally 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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