Quick Definition

Fixed income refers to investment securities that pay investors fixed interest or dividend payments until its maturity date. After maturity, investors are repaid the principal amount invested.

Examples

• 1Corporate bonds that pay semi-annual interest payments.
• 2Government treasuries that provide regular coupon payments.
• 3Municipal bonds used by local governments to fund public projects, offering tax-free interest income.
• 4Certificates of Deposit (CDs) held at a bank, accruing interest over a fixed period.

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