Bonds are generally seen as lower-risk investments. However, different types of bonds have different levels of risk. For example, government bonds are considered to be lower risk than corporate bonds as the probability of a government defaulting on interest payments is much lower than the probability of a corporation defaulting on interest payments. High-yield bonds are generally considered to be higher-risk investments. It’s important to understand that bond prices can rise and fall, and as an investor, you take on the risk that the value of your bonds could fall.