Fixed income definition

Fixed income is another word for Bond. Fixed income is long-term debt obligation issued by goverment or corporation. Fixed income normally pays annual interest rate and returns principal at specified future date (maturity date).

For example, buying 10-year $10,000 bond paying 5% annual interest means you will get $500/year in interest income for 10 years, then you will get your $10,000 principal back after 10 years.

Investor Dictionary

A   B   C   D   E   F   G   H   I   J   K   L   M   N   O   P   Q   R   S   T   U   V   W   X   Y   Z