bonds are considered to offer a guaranteed return, as they must be honored by law, but which is still a…

bonds are considered to offer a guaranteed return, as they must be honored by law, but which is still a potential risk that investors face?\nthe issuer may not raise enough capital.\nthe issuer could refuse to pay dividends.\nthe issuer could go bankrupt.\nthe issuer may not make a profit.

bonds are considered to offer a guaranteed return, as they must be honored by law, but which is still a potential risk that investors face?\nthe issuer may not raise enough capital.\nthe issuer could refuse to pay dividends.\nthe issuer could go bankrupt.\nthe issuer may not make a profit.

Answer

Brief Explanations:

Bonds are debt - securities. While they are legally binding for repayment, if the issuer goes bankrupt, they may not be able to fulfill their obligations to bondholders. Non - raising of enough capital doesn't directly affect bond repayment as it's a pre - issuance situation. Bonds don't pay dividends. And non - profitability doesn't necessarily mean non - repayment as long as there are assets to cover the bond debt.

Answer:

The issuer could go bankrupt.