Question

A ({bond} or {stock}) will pay income based on an interest rate, while a ({bond) or (stock)} may give dividends to investors. Both interest income and dividends contribute to the ({cost) or (return) or (risk)} on an investment.

Answer 1

Answer:

A bond will pay income based on an interest rate, while a stock may give dividends to investors. Both interest income and dividends contribute to the return on an investment.

Explanation:

A bond is a long-term debt tool used by governments and corporations to raise funds. To investors, bonds offer long-term investment opportunities that pay interest based on the prevailing market rates.

A stock is the smallest unit of a company. Owning stock is owning a small portion of the company. Stockholders are entitled to share in the profits of a company; that's why they receive dividends.

An investment is a commercial undertaking that provides the investor with a financial gain. The financial gain or profits may be dividends from shares or interests from deposits.