What are some examples of fixed-income securities?
The following is a list of some common fixed-income securities: • Bonds A bond is an obligation or loan made by an investor to an issuer (e.g. a government or a company). In turn, the issuer promises to repay the principal (or face value) of the bond on a fixed maturity date and to make regularly scheduled interest payments (usually every six months). The major issuers of bonds are governments and corporations. • Savings Bonds Savings bonds issued by the Canadian and various provincial governments are different from conventional bonds. Canada Savings Bonds (CSBs) typically pay a minimum guaranteed interest rate (there are also compound interest bonds available). A CSB carries no fees and is cashable at any time. The amount received for a CSB will never go below its face value if redeemed by the issuer, while the price received in the market for a conventional bond will depend on the level of interest rates at the time of sale. In addition, only residents of Canada (or of the province o
