Good reasons to invest in bonds for many specific ones include:
• Guaranteed Income Stream: Bonds provide a fixed stream of interest. That is very convenient, especially for an aging population or conservative investors.
• Less Risk: Bonds are less volatile than the stock market. Government bonds are virtually risk-free.
• Diversification: Bonds diversify a portfolio made up of stocks. If the stocks are going up and down, bonds tend to smooth out the ride.
• Repayment of Principal: When the term is over, you get your contribution if the issuer does not default.