Respuesta :

In the bond market, the relationship is the opposite. The federal government ... to meet its financial commitments. As such, junk bond issuers must pay a higher interest rate to attract investors

They want the stability and safety of a fixed income stream. The bond market is bigger than the stock market and allows for investors to diversify their holdings/investments. The bond market is an exchange where buyers and sellers bid on bonds on a daily basis.

Q&A Education