1. Blake and his housemates started an investment club, and it has been going well. So far, Brett has presented a pharmaceutical company with the potential of hitting it big with a drug that is about ready to go to market after clinical trials. Peter has presented a new sushi fast-food chain that is going public in order to expand throughout the United States.

Leigh is ready to present her recommendation to the group but is hesitant. Leigh’s concern is that she wants the investment club to diversify and buy bonds. She knows they are not as exciting as the stock options Peter and Brett have presented, but she wants something less risky. Leigh knows you are taking this class, so she comes to you to talk about bonds. What advice would you give her to convince her fellow investment club members to buy bonds?