Freddie mac paying me %5 on bonds are they same as stocks??

Question

i have over half million in freddie mac am i screwed or ok??

Answer 1

Bonds are loans to a corporation or goverment entity they are not stock.  Stock is ownership of the corporation.  There is always a possibility of loan default but if the company were to go bankrupt the order of repayment in case of liquidation is debtors, bondholders, stockholders.  So you are not screwed outside of the fact you are only getting a 5% return.