Fixed income includes bonds, high interest savings accounts, CDs and TIPS. Read all about them here. What are bonds? What is an interest payment? What is fixed income? Types of fixed income investments. How interest rates affect bond prices. What are CDs – certificates of deposit? Money market mutual funds Fixed income risks Tax free […]
bonds
A junk bond or high-yield bond is a bond rated at �speculative� grade or at �less than investment grade,� likely BB or lower. Its bond has to be markedly higher than a triple A bond to attract investors, and to make up for the additional risk of possible default. As a measure of comparison, the […]
Fixed income investments are a type of investment or investment asset class that is made up of securities that have a fixed price and pay some sort of interest at regular intervals.� Here are some examples of fixed income investments: Bonds – There are many different types of bonds but one of the more famous […]
Most investors own bonds via mutual funds or a target retirement fund.� Bonds are thought of as a very safe investment compared to stocks because their principal amount doesn’t change.� If you buy a $5,000, 10 year bond paying 6%, then in 10 years you will get your $5,000 back plus interest. �� Seems safe […]
Interest payments occur when you lend someone money and they pay back more than they borrowed.� For example, when you deposit money into a high interest savings account, then the bank will give you interest payments for lending them the money.� (Note: interest payments also occur when you borrow money, but then you pay interest […]
Bonds, also known as fixed income, are an investment you can purchase where you essentially lend money to whoever issued the bond in exchange for future income in the form of interest payments.� At the end of the life of the bond, you get your original investment back.� The interest payments and principal (amount of […]
Fixed income investments are defined as securities that have a regular fixed return associated with them as well as having a guaranteed principal.� This investment asset class is often considered less risky than buying stocks which isn�t always true since some fixed income investments are very risky. A fixed income security is only as good […]
