With bonds, the income is known in advance and can be planned.
As a general rule, bonds offer an attractive return for the level of risk.
Bonds are accessible to a large number of investors due to low entry thresholds.
DISADVANTAGES
Repayment of the principal is only guaranteed if the issuer remains solvent.
The price of a bond fluctuates during its lifetime.
The return on bonds is usually lower than that on other financial instruments, especially during periods of low interest rates.
The lack of demand for a security on the secondary market can cause a liquidity problem, i. e. it can be difficult to sell the securities under optimal conditions.
