2. which tends to be a riskier investment - corporate bonds or government bonds? why?\n3. which type of bond…

Answer:

2. Corporate bonds tend to be riskier. This is because corporations can face financial difficulties like bankruptcy, which may lead to default on bond payments. Government bonds, especially those of stable countries, are backed by the government's ability to tax and print money, making them less likely to default. 3. Answers may vary. Some may prefer government bonds due to their lower - risk nature and more stable returns, providing a sense of security. Others who are willing to take on more risk for potentially higher returns may prefer corporate bonds. For example, if an investor has a long - term investment horizon and can tolerate volatility, they might choose corporate bonds in search of better yields.

Brief Explanations:

For question 2, corporate bond risk is based on corporate financial health variability. Government bonds have stronger backing. For question 3, investment preference depends on risk tolerance and return expectations.