Debt securities are also called ________ income securities.

Question

Quizplus · Accepted Answer

Debt securities, such as bonds, have a fixed interest rate paid to the bondholder, making them fixed income securities. Choice A (guaranteed) is not always applicable to debt securities, as some may carry more risk than others. Choice B (par) refers to the face value of a bond, but does not describe its income characteristics. Choice C (variable) refers to securities with a fluctuating interest rate, which is not applicable to most debt securities. Choice E (passive) is not a relevant term in describing debt securities.

Debt Securities Are Also Called ________ Income Securities