Risk free assets, accounting homework help

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Business Finance

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Government bonds are considered to be 'risk-free' assets. Why, then, do they pay a return? Are they truly completely free of risk?

APA references please.

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Risk-free assets refer to those assets whose return are known with certainty. That is, the
returns on capital invested are predetermined and are not subject to any kind of change; be it
fluctuation or rise (Money, 2017). Similarly, a risk-free bond refers to the bond that has a set
intere...


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