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Can you walk me through the thinking on this question? Wouldn’t an investor who is interested in steady income be interested in bonds, such as a retiree? Although with bonds, there isn’t capital appreciation. Savings accounts will have a fraction of the rate of interest that bonds have (deposit rates are really low), so bonds are a better way to have money (that you don’t want to put into riskier stocks) invested with an better-than-a-savings-account rate of return.
8. Explain what types of individual investor would be interested in bonds, as opposed toputting their money into stocks or savings accounts.
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