Final answer:
The most accurate statement regarding bonds is that they cannot be cancelled or reduced once issued. Except in bankruptcy cases, bond issuers must fulfill their payment obligations, and investors can manage risk by diversifying their bond portfolios. Bail bonds, however, do entail a penalty if a defendant fails to appear in court.
Step-by-step explanation:
Regarding bonds, the statement that bonds cannot be cancelled or reduced after they are issued is most true. A bond is a financial contract indicating that the issuer will make certain payments over time, unless in rare cases of bankruptcy. In such an event, bondholders have recourse to require the defaulting company to liquidate assets to meet its obligations. Furthermore, in the realm of investment, diversifying bond investments by purchasing bonds from different companies can mitigate risk, since not all companies are likely to go bankrupt simultaneously, even in the case of junk bonds.
Bail bonds, on the other hand, do carry a penalty for failure to appear. They are a form of surety bond used to secure the release of a defendant awaiting trial, with the understanding that the full bail amount will be forfeited should the defendant fail to appear in court.