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

Question

Quizplus · Accepted Answer

Debt securities typically pay a fixed stream of income (interest payments) or a stream of income that can vary based on a specified formula (such as rates tied to market indices) for the duration of the security's life, not the life of the owner.

A Debt Security Pays