Quick Definition

A fixed-income security is a type of investment that provides returns in the form of regular, fixed payments and the eventual return of principal at maturity.

Examples

• 1Corporate bonds that pay semi-annual interest and return the principal at maturity.
• 2Government treasuries such as U.S. Treasury bonds, which offer secure, predictable income streams.
• 3Municipal bonds used by local governments to fund public projects, offering tax-free interest income to investors.
• 4Certificates of Deposit (CDs) that provide a fixed interest rate over a specified term.

Tags