Although some bonds are considered high-risk investments, they are considered a safer investment than stocks. Hence, option A holds true.
Bonds are such instruments of investment, where the bondholder is entitled to receive a predetermined amount of interest that is paid at the end or on maturity, as per the terms of the bond.
A bond is a debt instrument, normally issued by governments. As debts are a risky investment, they are still less risky than the stocks, as there is no guarantee of returns in stock investments. Moreover, a person may lose all of his principal investment in stocks.
Hence, option A holds true regarding the significance of bonds.
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