What is an investment known for having a future value that is certain and returns the risk-free rate?

The term that describes an investment having a future value that is certain and yields a return equivalent to the risk-free rate is known as a risk-free asset. Risk-free assets are typically government securities, such as treasury bills issued by stable governments, which are perceived to have minimal risk of default. Because the returns on these assets are backed by the government, investors are assured of receiving the promised payments at maturity, hence the certainty in future value.

These assets are significant in finance because they serve as a benchmark for determining the risk-adjusted performance of other investments. The risk-free rate is commonly used as a reference point or baseline for assessing the potential returns on higher-risk investments, allowing investors to make informed decisions based on their risk tolerance.

In contrast, other terms listed, while potentially similar, do not fully capture the essence of an investment that guarantees future value at the risk-free rate. "Secure investment" and "secure asset" may imply safety but do not explicitly denote the certainty of returns aligned with the risk-free rate. "Risk-free investment" is a descriptive phrase but is less commonly used than the term "risk-free asset" in financial discussions, which emphasizes the asset class itself rather than the nature of the investment.