Respuesta :
Answer: D) bonds pay a specific amount to the investor at maturity
Explanation:
Bonds generate income for investors: B. Bonds protect investors from bankruptcy.
- Bonds are considered to be safer investments as compared to the stocks because the bondholders can claim on the money generated by deposition of bonds in the event of bankruptcy. It becomes one of the source of income in scarcity of money.
- Bonds depreciates in value with time. The value of the bond reduces with as that of its face value.
- Bonds pay principle interest to the bond holder rather than to the bank.
- There is no surety of getting a specified amount after the maturity of bond as the value of bond depreciates with the time.
Hence, option B is correct.
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