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The liquidity premium on a US Treasury debt security is normally considered to be: e-0 percent Note:Any debt issued by the U.S. government is considered
The liquidity premium on a US Treasury debt security is normally considered to be:
e-0 percent
Note:Any debt issued by the U.S. government is considered to have zero default risk, including U.S. Treasury securities. Such debt is said to be backed by "the full faith and credit" of the U.S. government. Since the U.S. government has the power to tax the largest economy in the world, its bonds are considered by credit markets to be default-free
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