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Bonds provide the investor with a steady and predetermined stream of cash inflows. This is not true for stocks, since even dividend rates for stocks change very frequently. Also, the assessment of risk for bonds is easier than for stocks due to the availability of grades (e.g., AAA) by rating agencies such as Moody and S&P. Thus, bonds allow for easier financial planning and help in risk management of a diversified portfolio.

Actually, there's such a thing as a zero-coupon bond. They pay all their interest at the date of maturity, which is usually far in the future--10 years or more.

I like buying municipal bonds issued in my state--they're completely free of state taxes.

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10y ago

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Can stocks and bonds be purchased through the financial market?

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That would be asking bond holders to take stockholder type risks with bond holder type returns. No one would buy such bonds.


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Guaranteed return upon maturity


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