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Bonds are considered fixed-income securities because they pay a fixed amount of interest per quarter or per year for the term of the loan.

True or false

User Arjoonn
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Answer:

Bonds are considered fixed-income securities because they pay a fixed amount of interest per quarter or per year for the term of the loan.

True

Step-by-step explanation:

The Federal, State, or Municipal Governments and some well-known and established corporations may issue bonds as a form of long-term borrowing to fund their activities. Bonds, traditionally, pay a fixed interest rate to the bondholders or debtholders per indicated periods. Because Bonds pay some fixed incomes, they are regarded as fixed-income debt securities or instruments. Nowadays, some bonds are known to pay variable or floating interest rates.

User Alyss
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