Will investment be risk free

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Suppose you have a portfolio of $ 1 million in government bonds ofUnited States issued long-term.

Problem a) Will your investment be risk free?

Problem b) Now, suppose you invest your million in 90-day US treasury bills. Every 90 days the bills expire and you must reinvest all the capital. If you want to maintain a standard of constant life, is your investment truly risk-free?

Reference no: EM132965054

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