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(4 pts.) Please answer the following questions about the features of federal government bonds: Why is the debt of the federal government considered to be

  1. (4 pts.) Please answer the following questions about the features of federal government bonds:
    1. Why is the debt of the federal government considered to be the safest of all possible investments?

  1. When interest rates rise, what happens to the price of federal government bonds? What happens to the price of state and local government bonds?

  1. How do Treasury inflation-indexed securities help the investor manage risk?

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