A person may prefer bonds over stocks because the bond **interest payments** are guaranteed.

### Explanation:
Bonds are debt securities issued by corporations or governments to raise capital. When an investor buys a bond, they are essentially lending money to the issuer in exchange for periodic interest payments (usually semi-annual) and the return of the bond's face value at maturity. The guarantee of these interest payments makes bonds generally less risky than stocks, whose dividends may fluctuate based on company performance. Therefore, for investors seeking stable income and lower risk, bonds can be more attractive than stocks, especially in uncertain economic environments. Additionally, bondholders have a higher claim on assets than shareholders in the event of a company's liquidation, adding another layer of security to this type of investment.

Question

A person may prefer bonds over stocks because the bond **interest payments** are guaranteed.

### Explanation:
Bonds are debt securities issued by corporations or governments to raise capital. When an investor buys a bond, they are essentially lending money to the issuer in exchange for periodic interest payments (usually semi-annual) and the return of the bond's face value at maturity. The guarantee of these interest payments makes bonds generally less risky than stocks, whose dividends may fluctuate based on company performance. Therefore, for investors seeking stable income and lower risk, bonds can be more attractive than stocks, especially in uncertain economic environments. Additionally, bondholders have a higher claim on assets than shareholders in the event of a company's liquidation, adding another layer of security to this type of investment.

Knowee AI · Accepted Answer

A person may prefer bonds over stocks because the bond **interest payments** are guaranteed.

### Explanation:
Bonds are debt securities issued by corporations or governments to raise capital. When an investor buys a bond, they are essentially lending money to the issuer in exchange for periodic interest payments (usually semi-annual) and the return of the bond's face value at maturity. The guarantee of these interest payments makes bonds generally less risky than stocks, whose dividends may fluctuate based on company performance. Therefore, for investors seeking stable income and lower risk, bonds can be more attractive than stocks, especially in uncertain economic environments. Additionally, bondholders have a higher claim on assets than shareholders in the event of a company's liquidation, adding another layer of security to this type of investment.

Fill in the Blank QuestionFill in the blank question.A person may prefer bonds over stocks because the bond payments are guaranteed.

Question

Fill in the Blank Question

Solution

Explanation:

Similar Questions

Upgrade your grade with Knowee