Fixed income securities
What you'll learn
- Fixed income securities
- Financial management
A fixed-income security is an investment that provides a return in the form of fixed periodic interest payments and the eventual return of principal at maturity. Unlike variable-income securities, where payments change based on some underlying measure—such as short-term interest rates—the payments of a fixed-income security are known in advance.
Fixed-Income securities are debt instruments that pay a fixed amount of interest—in the form of coupon payments—to investors. The interest payments are typically made semiannually while the principal invested returns to the investor at maturity. Bonds are the most common form of fixed-income securities. Companies raise capital by issuing fixed-income products to investors.
Fixed-income securities provide steady interest income to investors throughout the life of the bond. Fixed-income securities can also reduce the overall risk in an investment portfolio and protect against volatility or wild fluctuations in the market. Equities are traditionally more volatile than bonds meaning their price movements can lead to bigger capital gains but also larger losses. As a result, many investors allocate a portion of their portfolios to bonds to reduce the risk of volatility that comes from stocks.
It's important to note that the prices of bonds and fixed income securities can increase and decrease as well. Although the interest payments of fixed-income securities are steady, their prices are not guaranteed to remain stable throughout the life of the bonds.
Who this course is for:
- students and professionals
Hello, I am a Chartered Accountant from India..I am Working in chennai. I am passionate about teaching various courses to students across the world.My courses are always student friendly and to the point.
I have worked in various departments of finance in corporate sectors and try to bring my experience into the teaching world.
I have an ability to teach the tough concepts with real life examples which make the students to understand the concepts in an easier way.
I hope the students will also enjoy the fruits of learning .