Problem: Bonds can be a great security to generate income and are widely considered to be a safe investment, especially compared with stocks. However, many investors do not understand that they can lose money when they invest in government bonds. Investors need to be aware of the risks of holding corporate and government bonds.
In this activity, you will discuss the risks investors take when they invest in bonds. In your post, discuss at least two types of risks and what can be done to mitigate them.