Why is a high-quality bond typically considered a lower-risk investment than a stock?
a.) a bond typically pays a fixed, predictable amount of interest each year.
b.) stocks are stable and do not change often.
c.) bonds are issued by many different entities .
d.) well-established company stocks pay dividends to their investors.

The correct option is (A).

A bond typically pays a fixed, predictable amount of interest each year.

Further Explanation:

Stock: The stock represents the individual ownership interest in the company.

Bond: The bond is a long-term debt which the company promises to pay with interest to their bondholders.  

• A bondpays a fixed amount of interest each year, and the amount is predictable; also, the bondholders get the benefit of interest to be paid first if the company is in loss also.

• Stocks are unstable, volatile in nature, and their value changes often. And their dividends are also unpredictable.

• Bonds can be issued by many different entities or companies. But this option does not make any sense regarding the lower-risk investment of the bond than the stock.  

• Well-established company stocks do not mean that they will pay dividends to their investors. The company might retain profits and can invest the amount in the future.

Learn More:

1. Stock and bonds  

2. Stock price  

3. Stock portfolio  

Answer Details:

Grade: High school

Chapter: Stocks and bonds

Subject: Business studies

Keywords: Why is a high-quality bond typically considered a lower-risk investment than stock, a bond typically pays a fixed, predictable amount of interest each year, stocks are stable and do not change often, bonds are issued by many different entities, well-established company stocks pay dividends to their investors.

i think the answer is a. science center.