Even though bonds are debt obligations, investing in them involves risk. What are the sources of risk?

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Even though bonds are debt obligations, investing in them involves risk. What are the sources of risk? What service is available to aid the buyers of debt instruments in selecting a particular bond?

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Investments An Introduction

ISBN: 978-0324561388

9th Edition

Authors: Herbert B Mayo

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Question Posted: Jun 26, 2012 07:29 AM

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Even though bonds are debt obligations, investing in them involves risk. What are the sources of risk?

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Sources of risk to investors in bonds are 1 Default which is the failure of the firm to meet the terms of the debts indenture 2 Fluctuations in intere...View the full answer

Investments An Introduction

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