Risk-free bond
A risk-free bond is a theoretical bond that repays interest and principal with absolute certainty. The rate of return would be the risk-free interest rate. It is primary security, which pays off 1 unit no matter state of economy is realized at time . So its payoff is the same regardless of what state occurs. Thus, an investor experiences no risk by investing in such an asset. In practice, government bonds of financially stable countries are treated as risk-free bonds, as governments can raise taxes or indeed print money to repay their domestic currency debt.
Wikipage redirect
primaryTopic
Risk-free bond
A risk-free bond is a theoretical bond that repays interest and principal with absolute certainty. The rate of return would be the risk-free interest rate. It is primary security, which pays off 1 unit no matter state of economy is realized at time . So its payoff is the same regardless of what state occurs. Thus, an investor experiences no risk by investing in such an asset. In practice, government bonds of financially stable countries are treated as risk-free bonds, as governments can raise taxes or indeed print money to repay their domestic currency debt.
has abstract
A risk-free bond is a theoreti ...... 1998 Russian financial crisis.
@en
Wikipage page ID
page length (characters) of wiki page
Wikipage revision ID
1,003,830,322
Link from a Wikipage to another Wikipage
wikiPageUsesTemplate
hypernym
type
comment
A risk-free bond is a theoreti ...... their domestic currency debt.
@en
label
Risk-free bond
@en