Bonds are not risk-free.
Hold them for two reasons: steady income and portfolio stability.
But watch out for 3 risks:
1- Interest rates: if they rise, your bond’s price falls.
2- Credit: the company may not repay you.
3- Inflation: it reduces the value of your returns.
Bonds are for balance, not for getting rich quick.
Hold them for two reasons: steady income and portfolio stability.
But watch out for 3 risks:
1- Interest rates: if they rise, your bond’s price falls.
2- Credit: the company may not repay you.
3- Inflation: it reduces the value of your returns.
Bonds are for balance, not for getting rich quick.