Bonds and Shares

Paper Summary:

Investors require a return to compensate for any uncertainty associated with cash flows associated with investment. This paper examines how, in the world of investment, all investors walk the line between greed and fear and how stocks and bonds are suitable investments for most individuals.

Outline
Advantages of Buying Different Types of Bonds
Rate of Return of the Bonds
Risk of Bonds
Interest Rates and Bonds

From the Paper:

"Most investors want to earn the highest possible yield and growth rate with the lowest possible risk. But maximum profit and low risk are not compatible attributes. As a bond investor, they must be aware of relationship between the risk and potential reward, or opportunity. Risk in its many forms will determine whether an investment is appropriate or not and will it earn the yield you wanted. The different kinds of bond risk are: (1) interest rate risk, (2) default risk, (3) business risk, (4) marketability risk, (5) inflation risk, and (6) event risk."

More papers on Bonds and Shares:

• Research Paper # 67550 : "Corporate Bonds and Preferred Stocks"
• Essay # 46205 : "Junk Bonds"
• Book Review # 139500 : "Family Bonds in "The Kite Runner"

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