are bonds a good investment 
like any investment the expected return of a bond must be weighed against its risk the riskier the issuer the higher the yield investors will demand junk bonds pay higher interest rates but are also at greater risk of default u s treasuries pay very low interest rates but have low risk 26can investors lose money in the bond market yes while not as risky as stocks bond prices fluctuate and can go down if interest rates rise the price of a highly rated bond will decrease the sensitivity of a bond s price to interest rate changes is known as its duration a bond will also lose significant value if its issuer defaults or goes bankrupt and it can no longer repay in full the initial investment nor the interest owed 28the bottom linethe bond market includes debt securities issued by governments and corporations both domestic and foreign bonds may also be structured with fixed or variable interest rates and may or may not be convertible into equity bonds are typically thought to be less volatile than stocks since they pay regular interest and return principal upon maturity 