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Secure Bonds to Raise Capital

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Your friend has told you about his or her plan to secure bonds to raise capital. Explain to your friend about the risks associated with investing in bonds. Describe at least four types of those risks.

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This solution helps with issues regarding secure bonds.

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Bonds are generally used as long term investment vehicles. While they assure the investor of a constant annual return from the coupon rate receivable, the risks associated with bonds include:

Default Risk
The company issuing the bond may get into financial problems during the course of the bond's tenure. During such periods of time, the company may be unable to maintain its regular ...

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