Bonds are considered to offer a guaranteed return, as they must be honored by law, but which is still a potential risk that investors face?

The potential risk that the investors may face when this is made use is that the issuer may not be able to make profit when the bonds are considered to offer as a guaranteed return because they are honored by law and with that, this will cause the value of the bond to be lowered when exposed in the market in which the return will also be lower when return to the investors.

The issuer may not be able to make a profit