High risk & low risk of bonds

Bonds in general are considered less risky than stocks for several reasons: Bonds carry the promise of their issuer to return the face value of the security to the holder at maturity; stocks have no such promise from their issuer.

High-yield bonds face higher default rates and more volatility than investment-grade bonds, and they have more interest rate risk than stocks. Emerging market debt and convertible bonds are the main alternatives to high-yield bonds in the high-risk debt category.

GOVERNMENT BONDS

Intermediate-term bonds mature in three to 10 years, whereas long-term bonds generally mature in 10 to 30 years. Risk Considerations: Among the lowest risk of all bond investments, these bonds have low credit risk because they are backed by the full faith and credit of the U.S. government

dear friend:

  i hope this letter finds you in soaring spirits and vibrant health. as you had expressed the wish to know about culture, traditions, and unity of india in your previous letter, in the following lines i have tried my best to give you glimpses of our culture, traditions, and unity. you will be amazed to know that our culture is the oldest culture in the world and the birth place of hinduism, buddhism, jainism, and sikhism. you won’t find any other culture as varied and multi-colored, multi-lingual as ours. each region has its own unique culture, traditions, language. there are 22 official languages in india.

  basically, india is a spiritual country with orthodox traditions. for example the people of india believe in traditions set by their wise forefathers. arranged marriages, joint-family system, universal brotherhood, vegetarianism, celebrating festivals such as diwali, holi, eid, etc., are the salient features of our culture and traditions.

  another unique aspect about our country is ‘unity in diversity’. in spite of the multi-lingual, multi-religious, multi-traditional, multi-cultural society, people live peacefully together, respecting one another’s views, cultures, traditions, and differences. i am sure you would love to visit india soon, and have a first-hand experience of the multi-colored culture. give regards to uncle and aunt. do visit india with your family and experience our hospitality.

your friend,