Question

What is one way in which bonds do not generate income for investors

Answer 1

Bonds do not generate income, but value. A bond that matures will rise in value, but during the time it is rising, it will generate no income, because it's just a piece of paper in a drawer.

Answer 2

I believe the answer is: Bonds pay a specified amount at maturity.

The maturity date that set up within the bonds usually can take months. Within that months, the amount of money that investors give would lie dormant and cannot be allocated to something else. Because of this, until the bonds actually mature, it could be perceived as the bonds not generating any income.