Fill in the Blank QuestionFill in the blank question.A person may prefer bonds over stocks because the bond payments are guaranteed.

In general, bonds are less risky than stocks. This is fundamentally because:a.All of them.b.Stocks do not promise contractual paymentsc.Bonds offer annual cash paymentsd.Stocks represent ownershipe.Stocks cannot be purchased all the time

An advantage of bonds is:Multiple ChoiceBonds require payment of par value at maturity.Bond payments can be burdensome when income and cash flow are low.Bonds require payment of periodic interest.Bonds do not affect owner control.Bonds can decrease return on equity.

Multiple Choice QuestionWhich of the following would not be a good choice when investing for investment income?Multiple choice question.corporate bondspreferred stockmunicipal bondsjust any common stock

How is a bond different from a stock?*1 pointA bond is a loan you give to an organization while a stock is partial ownership in the company.Bonds are typically riskier than stocks but have the potential to earn higher returns.A bond is usually issued by smaller, startup companies while stocks are with well established organizations.Bonds are best for earning high returns while stocks are best for providing a stable source of income.

explain the value of investing in both stocks and bonds