Personal Finance 1st Edition by Jack R. Kapoor

Exercise 8

Analyzing Why Investors Purchase Bonds. In your own words, explain how each of the following factors is a reason to invest in bonds. (Obj. 3)

a.?Interest income.

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b.?Possible increase in value.

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c.?Repayment at maturity.

Step 1 of 4

The reasons for which investors purchase bonds are as follows:

• To earn income from interest.

• For possible increase in value.

• To get repayment at maturity.