Can the investor expect to earn higher returns on a firms bo

Can the investor expect to earn higher returns on a firm’s bonds than on its stock?

Solution

An investor can expect to earn a higher return on a bond than on its stock. For example, in a high interest scenario, share prices fall. Their margins are squeezed off and the return offered by them in the form of dividends may decline. At such times, bonds can give a higher return than stocks.