Bonds can be used conservatively by investors seeking current income and aggressively by investors seeking capital gains.

Question

Quizplus · Accepted Answer

This statement is true. Bonds can be used for both purposes, depending on the investment goals and risk tolerance of the investor. Investing in bonds can provide a steady stream of income in the form of coupon payments, making them a popular choice for income-seeking investors. On the other hand, bonds can also be bought and sold in the secondary market, and if their price increases, investors can achieve capital gains. This can be a more aggressive strategy, as it involves market timing and predicting interest rate movements.

Bonds Can Be Used Conservatively by Investors Seeking Current Income