A fixed-income security pays
A)a fixed level of income for the life of the owner.
B)a fixed stream of income or a stream of income that is determined according to a specified formula for the life of the security.
C)a variable level of income for owners on a fixed income.
D)a fixed or variable income stream at the option of the owner.

Question

Quizplus · Accepted Answer

A fixed-income security provides a fixed stream of income or a stream of income that is determined according to a specified formula for the life of the security. It does not necessarily pay a fixed level of income for the life of the owner, nor does it offer variable income at the option of the owner.

A Fixed-Income Security Pays