Fixed income .

December 29, 2020 By Swapnil Suryawanshi

Fixed income refers to any type of investment under which the borrower or issuer is obliged to make payments of a fixed amount on a fixed schedule. For example, the borrower may have to pay interest at a fixed rate once a year and repay the principal amount on maturity. Fixed-income securities can be contrasted with equity securities – often referred to as stocks and shares – that create no obligation to pay dividends or any other form of income.

Terminology :

Some of the terminology used in connection with these investments is:

  • The issuer is the entity (company or government) who borrows the money by issuing the bond, and is due to pay interest and repay capital in due course.
  • The principal of a bond – also known as maturity value, face value, par value – is the amount that the issuer borrows which must be repaid to the lender.
Fixed Income (Definition, Types) | Examples of Fixed Income Securities

External links :

Wikimedia Commons has media related to Fixed income.
Careers in Fixed Income | List of Top 3 Fixed Income Careers (Job Roles)