Answer:
Bonds are considered fixed-income securities because they pay a fixed amount of interest per quarter or per year for the term of the loan.
True
Explanation:
The Federal, State, or Municipal Governments and some well-known and established corporations may issue bonds as a form of long-term borrowing to fund their activities. Bonds, traditionally, pay a fixed interest rate to the bondholders or debtholders per indicated periods. Because Bonds pay some fixed incomes, they are regarded as fixed-income debt securities or instruments. Nowadays, some bonds are known to pay variable or floating interest rates.
