Positive aspects about bonds include:

Question

Quizplus · Accepted Answer

Bonds generally have lower risk compared to equity because the issuer has a legal obligation to pay interest on the bond and repay the principal upon maturity. This lower risk makes bonds a more attractive investment for investors who prioritize capital preservation over capital appreciation. The other choices in the options are incorrect as bonds generally have lower dividend receipts, offer diversification properties and do not provide residual ownership. Bonds may also have lower returns compared to equity in some periods.

Positive Aspects About Bonds Include