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Essay text:
As bonds guarantee fixed returns of
interest and return of principal, they are one of the safest forms of investments in existence.
Many bonds are inflation adjusted making them even more attractive. People generally invest in
bonds to decrease their capital erosion risks (for example by securities markets), to save for
future use or even to save taxes. Sometimes people don’t directly invest in bonds, but do so via
Bond related mutual funds. The diversity of fixed-income securities presents investors with a
wide variety of choices to tailor investments to their individual financial objectives...
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