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Q: As an investor, why would you purchase a bond?
A: Bonds tend to be safer than stocks because if you hold bonds until the maturity date, you don't risk the principal. Plus, bonds can provide a regular, steady source of income (typically, interest payments are received every 6 months). [ For the long term, investors need to be willing to "tie up" money when investing in bonds. However, bonds tend to have a lower return than stocks over the long
term. ]
jher000|Points 7660|
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Asked 9/24/2012 1:25:05 PM
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