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Topic: Why do people keep buying bonds when the government is in debt? - page 2. (Read 1597 times)

legendary
Activity: 3766
Merit: 1217
Isn't it a greater risk to buy bonds when the government is in debt?

That depends on the nation, which is issuing the bonds. Some of the countries issue bonds which are having a very low risk of default, such as the United States. But these bonds usually have very low interest payments, like 3% per year. On the other hand, there are bonds issued by "risky" nations, which are having higher interest rates.
hero member
Activity: 812
Merit: 509
Isn't it a greater risk to buy bonds when the government is in debt?
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