Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. why would you want to invest in a bond over a stoc

Why would you want to invest in a bond over a stock? What are some of...

60.1K

Verified Solution

Question

Finance

Why would you want to invest in a bond over a stock? What aresome of the risks associated with investing in bonds?

Answer & Explanation Solved by verified expert
3.6 Ratings (683 Votes)
Answer The investment in bonds is advantageous than investing in stocks because the bonds pay fixed coupon payments and the principal at maturity whereas the stocks are highly volatile and is not liable to pay dividends and can decrease the value of stocks which can cause huge losses to the investor The risks associated with    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

Finance
1.2K views

Can someone please give details on how you solved them please! Your firm just received an order...

Programming
1.2K views

Part A: Write a set of statements that declare a variable of type double called yourNum,...

Physics
1.2K views

A window washer with a mass of 63.0 kg stands a distance, D = 0.600 m,...

Basic Math
1.2K views

There are 17 books on a shelf. 8 of these books are new. The rest...

Calculus
1.2K views

Write the equation of a sinusoidal graph with the following properties 2 A 3 period...

Algebra
1.2K views

Determine if the following relations are functions. Then state the domain and range.

Accounting
1.2K views

Oriole Company is considering a capital investment of $387,000 in additional productive facilities. The new...

Accounting
1.2K views

Wendell's Donut Shoppe is Investigating the purchase of an $33,700 donut-making machine with a slx-year...

Accounting
1.2K views

Ingrid's Inn purchased some property on December 31, 2011, for $103,000, paying $15,000 in cash...

Accounting
1.2K views

On January 1, ABC Inc. sold used equipment with a cost of $14,500 and a...

Finance
1.2K views

Three $1,000, 8% coupon rate bonds have 2,10 and 20 years until maturity respectively. If...

Finance
1.2K views

Which of following is a reason for a low - dividend - payout policy? O...