Treasury bonds are exposed to additional risks that are included

The correct answer is: Both A and B.

Treasury bonds are exposed to additional risks that are included reinvestment risk and interest rate risk.

• Reinvestment risk is the risk that the interest earned on a bond will not be sufficient to keep up with inflation. This is because the interest rate on a bond is fixed, so if inflation increases, the purchasing power of the interest payments will decrease.
• Interest rate risk is the risk that the value of a bond will decline if interest rates increase. This is because the price of a bond is inversely related to interest rates. When interest rates increase, the price of bonds decreases, and vice versa.

Both reinvestment risk and interest rate risk are important considerations for investors who are considering investing in Treasury bonds.