Bonds are often referred to as fixed-income securities because they:
A) have a set interest rate.
B) are more commonly held by retirees.
C) adjust interest payments with the inflation rate.
D) have a fixed price.

Question

Quizplus · Accepted Answer

Bonds have a set interest rate, which means the interest payments are fixed and do not fluctuate with changes in the market or inflation rate. This is why they are commonly referred to as fixed-income securities.

Bonds Are Often Referred to as Fixed-Income Securities Because They