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Why is an investment grade bond is considered a safe investment?
Wiki User
∙ 9y ago
Investment grade bonds are considered a safe investment because there is generally only a small risk of loss of principle when they are issued by highly rated corporations, U.S. government agencies or by the United States government, especially compared to higher risk investments like stocks. There is also a periodic coupon payment that provides a consistent income which the issuer of the bonds is obligated contractually to pay.
Wiki User
∙ 9y ago
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What is the features of a mortgage bond?
A mortgage bond is a bond that is secured by a mortgage on a property. Mortgage bonds are backed by real estate or physical equipment that can be liquidated. These are usually considered high-grade, safe investments.
Why are US Bonds considered a safe investment?
cuz it isssssss
Why is certificate of deposit considered such a safe investment?
it is guarantee by the federal government.
What does the term corporate bond funds refer to?
The term corporate bond funds refers to a type of investment where the funds all come from corporate bonds. With the word bond in the name, it gives the impression that this would be a very safe choice for an investment. In fact this type of investment can be far more risky than stocks.
Is investing in bonds safe?
It is not a 100% safe but it is comparatively safer than investing in stocks. The main risk associated with investing in bonds is the fact that, if the bond issuer goes bankrupt, our money is gone. Apart from this, there is no major risk to our investment (Principal) part in bond investments.
Why is an investment grade bond considered a safe investment?
Investment grade bonds are considered a safe investment because there is generally only a small risk of loss of principle when they are issued by highly rated corporations, U.S. government agencies or by the United States government, especially compared to higher risk investments like stocks. There is also a periodic coupon payment that provides a consistent income which the issuer of the bonds is obligated contractually to pay.
What is the features of a mortgage bond?
A mortgage bond is a bond that is secured by a mortgage on a property. Mortgage bonds are backed by real estate or physical equipment that can be liquidated. These are usually considered high-grade, safe investments.
Whart is bond investing all about?
Bond investing is a very safe investment. Due to its safety the percentage of return is not high.
Why are US Bonds considered a safe investment?
cuz it isssssss
Why is certificate of deposit considered such a safe investment?
it is guarantee by the federal government.
What does the term corporate bond funds refer to?
The term corporate bond funds refers to a type of investment where the funds all come from corporate bonds. With the word bond in the name, it gives the impression that this would be a very safe choice for an investment. In fact this type of investment can be far more risky than stocks.
Are municipal bonds a sound form of investing?
Municipal offer a very safe investment for a marginal return,this is considered a good investment.
What is the definition of food grade?
Not considered safe for use in food by the Food and Drug Administration.
Is investing in bonds safe?
It is not a 100% safe but it is comparatively safer than investing in stocks. The main risk associated with investing in bonds is the fact that, if the bond issuer goes bankrupt, our money is gone. Apart from this, there is no major risk to our investment (Principal) part in bond investments.
What is the definition of non food grade?
Not considered safe for use in food by the Food and Drug Administration.
Why is it important to use safe investments?
Because, the purpose of an investment is to earn a profit using it. But, if an investment is not safe then there is a chance that you'll lose your investment. So you'll lose your hard earned money if your investment is not safe
Where can information on a safe investment be found?
Information on safe investment can be found from a nearby bank. One can also find information on a safe investment from online sites like FDIC, IARD and many more.
