Review:
Government Bonds
overall review score: 4.2
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score is between 0 and 5
Government bonds are debt securities issued by a government to raise funds for various public projects or initiatives. Investors purchase these bonds with the expectation of receiving periodic interest payments and the repayment of the principal amount at maturity.
Key Features
- Low risk investment
- Guaranteed by the government issuer
- Fixed interest payments
- Can be traded in secondary markets
Pros
- Stable and predictable returns
- Considered a safe investment option
- Diversification benefits for investment portfolios
Cons
- Potential for low yields compared to other investments
- Interest rate risk if rates rise after bond purchase