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Which statement could describe the returns from a bond?

2 Answers

2 votes

Answer: B

Explanation:

User EoghanM
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2 votes

Answer:

A bond is a debt security, meaning that it represents a loan made by an investor to a borrower (typically a corporation or government). The bond issuer promises to pay interest to the bondholder, usually at regular intervals, and to repay the principal when the bond matures.

So, a statement that could describe the returns from a bond is:

"Bonds typically provide a steady stream of income in the form of interest payments, but the return on investment is generally lower than that of stocks."

Another statement that could describe the returns from a bond is:

"Bonds are considered to be a relatively safe investment option, but they are not as profitable as stocks in terms of returns."

In general, bonds are considered to be less risky than stocks, but they also typically offer lower returns.

User Aldemarcalazans
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