CDs are time deposits offered by banks with fixed interest rates and maturity dates. They provide a safe haven for investors seeking steady returns without exposing their capital to market risks.
Preferred stocks combine features of both bonds and common stocks, offering a fixed dividend payment like bonds while also providing potential for capital appreciation like stocks. They are often favored by income-oriented investors seeking higher yields.
For investors seeking diversification and professional management, bond mutual funds and exchange-traded funds (ETFs) offer a convenient way to access a portfolio of bonds across different sectors and credit qualities.