Fixed$-$income securities consist of debt instruments and preferred stock. Bonds are debt securities in which a borrower promises to pay a specified interest rate and principal at a future date.

Which of the following statements about Treasury bonds is the most accurate?

Treasury bonds have a very small amount of default risk, so they are not completely riskless.

Treasury bonds are completely riskless.

Treasury bonds are not completely riskless, since their prices will decline when interest rates rise.