Treasury consistently have lower yields than bonds mainly

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Bonds issued by the U.S. Treasury consistently have lower yields than other bonds mainly because:

A) The U.S. Treasury is very unlikely to default

B) They are legally backed by U.S. gold reserves

C) The U.S. government issues vast quantities of bonds

D) The interest payments are not subject to federal income taxes

E) The Treasury is legally required to offer lower yields to minimize interest expense

F) The Federal Reserve supports the prices of Treasury debt by holding so much of it

Reference no: EM13771014

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