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? the issuer may not raise enough capital. the issuer could refuse to pay dividends. the issuer could go bankrupt. the 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? the issuer may not raise enough capital. the issuer could refuse to pay dividends. the issuer could go bankrupt. the issuer may not make a profit.

Answer

Brief Explanations:

Bonds are debt - securities. If the issuer goes bankrupt, they may not be able to honor the bond payments despite legal requirements. Non - raising of enough capital doesn't directly affect bond payments as they are debt obligations. Bonds don't pay dividends. Lack of profit doesn't necessarily mean non - payment of bonds as long as there are assets to cover debt.

Answer:

The issuer could go bankrupt.