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.

Bonds are a type of investments that is categorized as a fixed-income instrument which symbolizes loans that investors make to a borrower. Bonds can be made by a corporation or a government. Bonds always have end dates, and they generally have lower risks compared to stocks.

However, there are still some risks associated with this type of instrument, which is (C) the issuer could go bankrupt.

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ewomazinoade ewomazinoade · Answer 2 · 2022-03-16T11:41:44+01:00

The potential risk that bond investors face is that the issuer may go bankrupt.

What is a bond?

A bond is a debt instrument that is used by companies to raise capital to run their business. Investors in bond receive fixed predetermined payments that cannot be defaulted on except if the bond issuer goes bankrupt.

In the case that the issuer goes bankrupt, the bondholders receive a share of the liquidated assets.

To learn more about bonds, please check: https://brainly.com/question/9970004

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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What is a bond?

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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.