Advantages of Investing in BondsInvestors buy bonds for various reasons. Firstly, it is because it can increase returns that investing in bonds can improve their returns rather than sitting on cash. Compared to other investments, such as bank savings accounts, bonds pay a much higher interest rate. So, instead of keeping money in a bank, people can invest in bonds and earn a good interest rate. Second, by investing in bonds, investors can earn stable interest income. Bonds provide stable, predictable coupons in the form of income streams. Bonds also provide a predictable return of principal at maturity. On the other hand, investing in bonds is also a good risk diversification tool. This is because bonds have a low correlation with other asset classes, so their inclusion can provide relative stability to a portfolio. Additionally, bonds often perform similarly to stocks over time, but with less volatility. In addition, bonds have capital appreciation potential. But the market price of a bond is affected by market interest rates and the perceived creditworthiness of the issue....