 |
Definition of 'Fixed-Income Security'
An investment that provides a return in the form of fixed periodic payments and the eventual return of principal at maturity. Unlike a variable-income security, where payments change based on some underlying measure such as short-term interest rates, the payments of a fixed-income security are known in advance.
|
 |
Investopedia explains 'Fixed-Income Security'
An example of a fixed-income security would be a 5% fixed-rate government bond where a $1,000 investment would result in an annual $50 payment until maturity when the investor would receive the $1,000 back. Generally, these types of assets offer a lower return on investment because they guarantee income.
|
-
If your investments in the stock market are keeping you from sleeping at night, it's time to learn about the safer alternatives in the money market.
Read More »
-
Bonds have typically been viewed as stocks' less-glamorous sidekick, but they deserve a little more respect from investors.
Read More »
-
If you start today, you can set your kids up for a lifetime of smart money management.
Read More »
-
-
These securities are meant to be held until maturity, removing the burden of complex pricing that sometimes plagues bonds.
Read More »
-
Evaluate your investments with this simple tool.
Read More »
-
Discover these safe alternatives to Treasury bonds.
Read More »
-
Find the fund to fit your investing style.
Read More »
-
Credit rating agencies have a long history in this country. Learn about what they do and how were they developed.
Read More »
-
Spending investment interest in retirement can be a viable strategy, but it won't work for everyone.
Read More »
-
RV travelers can provide an interesting challenge for advisors.
Read More »
-
Learn how to choose between bills, notes or bonds.
Read More »
|
|
