(Solution) BUS 1102 Discussion 7 Bonds as Investments

COURSE

BUS 1102 – Basic Accounting

Chapter 13 discusses various types of bonds. For this discussion, choose two types of bonds you would invest in.

  • Provide the strengths and weaknesses of each of the bonds that you have chosen.
  • Explain why you have chosen the two bonds.

SOLUTION 

Each of the two bond options has its pros and downsides, and I need to keep that in mind as I make my investment decision. In the end, I settled on purchasing municipal and corporate bonds.

“City and local governments issue municipal bonds as debt instruments.” (Sbragia, 2019). General obligation (GO), assessment, and revenue bonds are the three types of municipal bonds. Interest on municipal bonds is typically paid semi-annually, making them a predictable source of income for investors. As a bonus, the danger of defaulting on interest and principal payments on municipal bonds has traditionally been extremely low, making them a relatively secure investment option.….please click the icon below to purchase the solution at $5