All of the Following Are Considered Fixed Income Investments except

question 14

Multiple Choice

All of the following are considered fixed income investments except

• A) Corporate bonds.
• B) Preferred stock.
• C) Treasury bills, notes, and bonds.
• D) Money market mutual funds.
• E) Certificates of deposit (CDs).

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Definitions:

Modified Duration

A measure of the sensitivity of the price of a bond or other debt instrument to changes in interest rates, adjusted for the bond's yield.

Perpetuity

A type of annuity that pays an infinite series of cash flows, with no end date.

Duration

Duration measures a bond's sensitivity to interest rate changes, representing the weighted average time until a bond's cash flows are paid to the investor.

Annual Pay

The total monetary compensation an employee receives from their employer in a one-year period, including all forms of salary, bonuses, and other financial benefits.