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Bonds: Can be dependable source of fixed income Can be basis (safe guard) of an investment portfolio. Can be free from taxes Usually safe. There are ratings which show how risky the bonds are to invest in ie AA Bb etc They aren’t risk free, if the government or company goes bankrupt, then you lose your money. If interest rates go down then your bond may be “called”. This means that you get back the interest early, but only for the time you have kept it.