Question

Which person is most likely to invest in the bond market?

A. A person who enjoys frequent changes in the value of an investment
B. A person who needs to earn a dividend instead of interest C. A person who wants a steady return on an investment
D. A person who invests in a corporation instead of the government

Answer 1

D is totally wrong. Both organizations issue bonds.

C is the best answer.

B is backwards. You want to get interest from an investment in bonds. You get a dividend from stocks.

A Bonds don't fluctuate much in value, depending on what kind they are. Bond holders don't usually like to see their bonds change value. If you want a change in value, buy stocks.