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how do bonds generate income for investors? bonds depreciate in value. bonds protect investors from bankruptcy. bonds pay interest to the bank that sold the bond. bonds pay a specified amount to the investor at maturity.

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ajinems

Bonds generate income for investors by paying a specified amount to the investor at maturity.

What are bonds in investments?

Bonds are fixed income instruments that are used by investment in a business enterprise to raise funds for specific purposes.

When a bond is held by an investor till maturity, bondholders get back the entire principal, so bonds are a way to preserve capital while investing.

Therefore, bonds generate income for investors by paying a specified amount to the investor at maturity.

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malenalynn2006

D. Bonds pay a specific amount to the investor at maturity.

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