Section 5
Advantages and Disadvantages of Bonds
Book
Version 3
By Boundless
By Boundless
Boundless Finance
Finance
by Boundless
2 concepts
Advantages of Bonds
Bonds have some advantages over stocks, including relatively low volatility, high liquidity, legal protection, and a variety of term structures.
Disadvantages of Bonds
Bonds are subject to risks such as the interest rate risk, prepayment risk, credit risk, reinvestment risk, and liquidity risk.