Bonds are considered to offer a guaranteed return, as they must be honored by law, but which is still a potent

Question

Bonds are considered to offer a guaranteed return, as they must be honored by law, but which is still a potential risk that investors face?

The issuer may not raise enough capital.
The issuer could refuse to pay dividends.
The issuer could go bankrupt.
The issuer may not make a profit.

GPT-5 mini · Answer

The issuer could go bankrupt.

Even though bond payments are legally required, if the issuer becomes insolvent it can default on interest or principal. The other choices refer to equity/dividend issues or profitability, which don't directly guarantee bond payment.

Bonds are considered to offer a guaranteed return, as they must be honored by law, but which is still a potential risk that investors face?

The issuer may not raise enough capital.
The issuer could refuse to pay dividends.
The issuer could go bankrupt.
The issuer may not make a profit.

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Bonds are considered to offer a guaranteed return, as they must be honored by law, but which is still a potential risk that investors face? The issuer may not raise enough capital. The issuer could refuse to pay dividends. The issuer could go bankrupt. The issuer may not make a profit.

All Answers 1

Submit Your Answer

Bonds are considered to offer a guaranteed return, as they must be honored by law, but which is still a potential risk that investors face?

The issuer may not raise enough capital.
The issuer could refuse to pay dividends.
The issuer could go bankrupt.
The issuer may not make a profit.