(All Steps) Financial markets In your own words explain the difference between stocks and bonds. Make sure to mention the benefits and downsides of each

Question: Financial markets

In your own words explain the difference between stocks and bonds. Make sure to mention the benefits and downsides of each of these.
If you had a choice to buy $1000 worth or stocks or bonds, which one will you choose? Please explain your reasoning.
Suppose you decided to buy $1000 bond that pay 5% yearly interest rate and mature in 25 years. A year later you find yourself in a situation where you can really use some money so you decide to sell your bonds. If current interest rate is 3%, how much is your bond worth now?

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(All Steps) Financial markets In your own words explain the difference between stocks and bonds. Make sure to mention the benefits and downsides of each

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