Hoti, Suhejla; Maasoumi, Esfandiar; McAleer, Michael; … - In: Econometric Reviews 28 (2009) 6, pp. 522-554
As U.S. Treasury securities carry the full faith and credit of the U.S. government, they are free of default risk. Thus, their yields are risk-free rates of return, which allows the most recently issued U.S. Treasury securities to be used as a benchmark to price other fixed-income instruments....
