Corporate bonds are not as risky as common stocks from the same firm.

Question

Quizplus · Accepted Answer

Corporate bonds typically have a fixed interest rate and a predetermined maturity date, which means they have a more predictable cash flow compared to common stocks. Additionally, in the event of bankruptcy, bondholders are usually paid first before shareholders. However, it is important to note that all investments carry some degree of risk and it is important to diversify one's portfolio.

Corporate Bonds Are Not as Risky as Common Stocks from the Same