kasinkei

Yes, it's an ethic question. But for me that wasn't the point.

I just did not like the answer "there is no default risk". I read that several times, not only in Ethics, and find it really strange.

In this particular question, it did not make a difference:

A manager says "Since the US government guarantees payment of both the bond's principal and interest, risk of loss with this investment is virtually zero"

This is a violation of the standard on misrepresentation. No doubt.
Explanation: No default risk, but price risk.
My opinion: price risk AND default risk.