Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. bond risk bonds are often considered safer investm

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: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

(b) Answer the following in relation to flow through orifices. (i) Explain why the coefficient of...

Civil Engineering
Q

In a nuclear fission reactor, each fission of a uranium nucleus is accompanied by the emission...

Physics
Q

A parallel plate capacitor is made of two dielectric blocks in series One of the...

Physics
Q

ries LC An inductor 20 mH a capacitor 100 F and a resistor 50 2...

Physics
Q

Integrate as indicated Assume g x 0 whenever In g x is involved 8x 1...

Calculus
Q

1 Solve the following a if m27 100 find m23 b if m1 120 find...

Algebra
Q

Required information (The following information applies to the questions displayed below.) Nicole organized...

Accounting
Q

The following information was drawn from the Year 1 accounting records of Ozark Merchandisers: 1....

Accounting
Q

Carol owns 40% of Grizzly Corporations outstanding stock. Her daughter Joy and son-in-law John each...

Accounting
Q

what in Information Systems helps keep the balance sheet and Income Statement accurate?

Accounting
Q

The foliowng table contairs a trypothetical pastal master budput performance report for Oivia's Fudge Company...

Accounting
Q

a. On October 1, the Business Students' Society (BSS) placed an order for 200 golf...

Accounting