A bond typically pays a fixed, predictable amount of interest each year.
High-quality bonds are forms of debts issued to firms or companies for a minimum of one year or more. On the hand, stocks are the capital that a business will get by selling out its shares to investors. When these two are combined and compared, high-quality bonds are considered lower risks investments than stocks due to their higher payout. High-quality bonds will be consistent in terms of payout throughout each period while stocks might vary depending on the performance of the company. High-quality bonds are also recession resistant and will get paid first before stake holders in case a company falls .
