Debt securities promise:
I. A fixed stream of income.
II. A stream of income that is determined according to a specific formula.
III. A share in the profits of the issuing entity.

Question

Quizplus · Accepted Answer

Debt securities promise a stream of income, but it can be either fixed (Option I) or determined according to a specific formula (Option II). Debt securities do not offer a share in the profits of the issuing entity (Option III), as they are not equity securities. Therefore, the best choice would be either Option I or Option II, which are both offered by debt securities.

Debt Securities Promise: I. a Fixed Stream of Income