BOND RISK Bonds are often considered safer investments than stock. As a bondholder, what risks would you...

50.1K

Verified Solution

Question

Finance

BOND RISK

Bonds are often considered safer investments than stock.As a bondholder, what risks would you face, and how are these riskfactors lower for bonds than they are forstock?  

Answer & Explanation Solved by verified expert
3.9 Ratings (746 Votes)
Risks in bonds are comparatively lower than the risk of stock Some of these risk are Credit risk the bondholders will always have the credibility risk on part of the issuer If the company is not financially stable there is a risk For bond holders there is a risk of nonpayment of interest But there is much higher risk for the equity holders because    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students