Government bonds. Risk-free interest or interest-free risk?

Seminar paper from the year 2020 in the subject Business economics - Investment and Finance, grade: 1,7, University of Applied Sciences Rosenheim, language: English, abstract: In exceptional circumstances, such as the current Covid-19 pandemic, long-term effects on society and on the economy cannot be reliably predicted. Many investors are therefore looking for an investment opportunity to invest their savings as risk-free as possible. Due to the many restrictions imposed on the economy by the state to fight the spread of the virus, a large proportion of companies listed on the capital market have suffered severe financial losses. As a result, a lot of states have become heavily indebted in the allocation of financial resources to support citizens and the economy. In the search of investment opportunities that can offer investors a return despite a high level of security, the main question for capital market observers is whether there is currently any risk-free form of investment at all.