Because unless the company defaults on the bond, a bond features three knowns: how much it pays, when it pays and how many times it pays. Let's use the simplest kind of bond to calculate: a five-year $1000 zero-coupon bond sold at a 25 percent discount. This bond will sell at $750--25 percent off the face value--and will pay $1000 to whoever holds it the day it matures. Here we know: We know the bond pays $250, answering "how much." We know it pays in five years, answering the "when." And we know it pays one time, answering the "how many times." Stocks don't do that. They gain and lose value as a matter of course. They don't necessarily pay dividends. They split. They are a much more dynamic investment than bonds, but the dynamism is repaid by stock giving a potentially higher return on investment than bonds.
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Investment grade bonds are considered a safe investment because there is generally only a small risk of loss of principle when they are issued by highly rated corporations, U.S. government agencies or by the United States government, especially compared to higher risk investments like stocks. There is also a periodic coupon payment that provides a consistent income which the issuer of the bonds is obligated contractually to pay.
Depending on the return you are looking foe bank bonds are good. Bank bonds also are very safe.
Because these bonds are considered a very low risk dependable investment.
it is guarantee by the federal government.
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Municipal offer a very safe investment for a marginal return,this is considered a good investment.
The muni bonds are fairly safe investment. Thesis municipal bonds are issued by local government or municipalities. In most of the cases the interest earned from these bonds is exempted from income tax.
Investment grade bonds are considered a safe investment because there is generally only a small risk of loss of principle when they are issued by highly rated corporations, U.S. government agencies or by the United States government, especially compared to higher risk investments like stocks. There is also a periodic coupon payment that provides a consistent income which the issuer of the bonds is obligated contractually to pay.
Investment grade bonds are considered a safe investment because there is generally only a small risk of loss of principle when they are issued by highly rated corporations, U.S. government agencies or by the United States government, especially compared to higher risk investments like stocks. There is also a periodic coupon payment that provides a consistent income which the issuer of the bonds is obligated contractually to pay.
Depending on the return you are looking foe bank bonds are good. Bank bonds also are very safe.
There is no strategy to speak of. Municipal bonds are a low-yield, long-term sure investment, all characteristics of a safe investment.
stocks and bonds.
Municipal bonds provide a great investment tool with some tax advantages. This is also a very safe investment with very low risk.
Bonds are generally considered long-term obligations.
Because these bonds are considered a very low risk dependable investment.
it is guarantee by the federal government.