Bonds can earn income through interest payments and capital gains. This statement is true.
Bondholders generally earn income both from interest and from capital gains too. The primary reasons for owning bonds are the income provided by them and also the stability brought by them to an investment portfolio. From 1996 through 2005, the bond market outperformed the stock market by a very slim margin.
Bonds varies among a number of investments known as fixed-income securities. They are the obligations of debt, means that the investor loans a sum of money i.e the principal to a company or a government for a set period of time, and in return of it
It receives a series of interest payments i.e. the yield. When the bond reaches its maturity, the principal is returned to the investor.
To know more about the bonds interest rate here:
https://brainly.com/question/17483487
#SPJ4
