Debt Securities Are Often Called Fixed-Income Securities Because

question 22

Multiple Choice

Debt securities are often called fixed-income securities because

• A) the government fixes the maximum rate that can be paid on bonds.
• B) they are held predominantly by older people who are living on fixed incomes.
• C) they pay a fixed amount at maturity.
• D) they promise either a fixed stream of income or a stream of income determined by a specific formula.
• E) they were the first type of investment offered to the public which allowed them to "fix" their income at a higher level by investing in bonds.

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