what s the difference between a government and corporate bond 
government bonds are issued by different forms of government including federal and local governments corporate bonds on the other hand are issued by companies usually those that are more established government bonds tend to be considered safer because they are backed by the full faith of the issuing entity such as those offered by the u s government corporate bonds on the other hand are often deemed a little riskier although bondholders are ahead of common stockholders when it comes to being paid bonds can lose their value if the issuing company goes bankrupt this means there s no guarantee how much bondholders will receive 1can i lose money on a bond yes there are instances when you can lose money on a bond bonds are generally considered safe investments but they are susceptible to certain risks for instance inflation can eat away at the returns of a bondholder if inflation is running higher than what the bond pays then you ll lose out you can also lose money on a bond because of any taxes you may owe on the interest you earn 12the bottom linebonds are fixed income investments that are generally considered safe investors who hold bonds are called bondholders make sure you know the ins and outs of being a bondholder notably things like the interest rate maturity date and credit ratings of bond issuers if you re reviewing an investment in government or corporate bonds there are certain factors you should consider although they are usually safer than stocks bonds do come with certain risks including inflation and interest rate risk 1