What are the benefits of bonds?

What are the benefits of investing in bonds?

Investing in bonds can provide steady income, lower risk compared to stocks, and portfolio diversification.

How do bonds compare to stocks in terms of risk?

Bonds are generally considered less risky than stocks, as they provide fixed interest payments and return of principal.

Can you explain how bond yields work?

Bond yields represent the return an investor can expect. They vary based on interest rates and the bond's price.

What types of bonds should I consider?

You might consider government bonds, municipal bonds, or corporate bonds, depending on your risk tolerance and goals.

Are there any tax benefits associated with bonds?

Yes, some bonds, like municipal bonds, may offer tax-free interest income, which can be beneficial for investors.