Question: T hat Tools Extensions Help Normal text X GucciBang15 &In Lobby E Chapter 5 Economics - Google Docs D Times... 20 $ 1 1 4

T hat Tools Extensions Help Normal text X GucciBang15 &In Lobby E Chapter 5 Economics - Google Docs D Times... 20 $ 1 1 4 3 E C 888 T R 3 5 6 L Q1. Briefly describe the difference in the bond market in general and the stock market in the context of investment and return. Why is corporate bond investment usually riskier than investing in US Treasury securities? The bond market is when a consumer buys or sells debt securities that come from the government that make you pay it back with interest over time. The stock market is buying a share in a company and ownership comes with the potential of increasing money, but it is riskier because it is about how the company performs. Corporate bonds are riskier than investing in the US Treasury securities because the US Treasury is backed by the government which makes it safer. The bond depends on the financials of the company. Q2. During a recession, the yield for corporate bonds tends to increase and the yield for US Treasury securities tends to decrease. Briefly ex

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!