Are loans to a company or government for a set amount of time they earn interest and are considered low risk investments

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Frank

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23 December, 23:04

Are loans to a company or government for a set amount of time they earn interest and are considered low risk investments

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Emilia Choi · Answer 1

Bonds are loans to a company or government for a set amount of time they earn interest and are considered low risk investments.

Bonds are investments that have a fixed interest rate and a fixed amount of time which it will be repayed. Bonds are created when a company or government wants to finance something using investors instead of a bank. Bonds are more dependable and lower risk than stocks.