Question $1$

Show that fixed income securities are risk free $($no risk$)$ or $=0.$

You can ignore default risk $($risk of issuer not being able to repay$)$ and concentrate only on return ris You should use a mathematical approach and not a verbal one.

Remember that:

$P_1=F=P_0(1+rt)$ and rate of return $.$ Follow your logic for at least $2$ consecutive periods.