Treasury bonds are the least risky of all bonds and, therefore, pay a lower rate of interest.
The amount a lender charges a borrower is called an interest rate, and it is expressed as a percentage of the principal or the loaned amount. Typically, a loan's interest rate is expressed as an annual percentage rate, or APR (APR).
A savings account or certificate of deposit earnings at a bank or credit union may also be subject to an interest rate (CD). The interest received on these deposit accounts is measured in annual percentage yields (APY).
The amount that a lender charges a borrower for the use of assets on top of the principal is known as the interest rate.
The money generated from a deposit account at a bank or credit union is likewise subject to an interest rate.
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