Question

Why is a high-quality bond typically considered a lower-risk investment than a stock?
A

Answer 1

The answer is an investment-grade bond. A bond is considered speculation review if its FICO assessment is BBB-or higher by Standard and Poor's or Baa3 or higher by Moody's. By and large, they are bonds that are judged by the rating organization as sufficiently likely to meet installment commitments that banks are permitted to put resources into them.