Which of these statements answers why bonds are known as fixed income securities?
A)Many investors on fixed incomes buy them.
B)Investors know how much they will receive in interest payments.
C)Investors will not receive their principal when the bond's term is up.
D)All of these choices are correct.

Question

Quizplus · Accepted Answer

Bonds are known as fixed income securities because investors know how much they will receive in interest payments. Unlike stocks, where dividends can fluctuate, the interest payments on bonds are fixed at a certain rate for the life of the bond.

Which of These Statements Answers Why Bonds Are Known as Fixed