Question

Question: What purpose does the variety in bond features (types and characteristics) serve?

Short answer

Answer:

Variety in bond features helps investors reduce their risk and generate a high yield.

Step-by-step solution

Definition of bond

A bond may be a certificate style within which an organization or government takes a loan from the final public. During this, the company or government promises to pay interest.

Purpose of variety in bonds 

The main feature of the variability shackled is that it provides a variable rate of interest. Variable charge per unit means those rates of interest which aren't fixed. It helps investors scale back their risk and help them induce high yields. Bond variety also helps the issuer by way of debt.