12. A U.S. investor who purchases the bonds issued by the U.S. government makes the following statement:

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12. A U.S. investor who purchases the bonds issued by the U.S.

government makes the following statement: “By buying this debt instrument, I am not exposed to default risk or purchasing power risk.”

Explain why you agree or disagree with this statement.

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Foundations Of Global Financial Markets And Institutions

ISBN: 9780262039543

5th Edition

Authors: Frank J. Fabozzi, Frank J. Jones, Francesco A. Fabozzi, Steven V. Mann

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