QUESTION IMAGE
Question
question 3 of 5
which investment type is a fixed income investment, meaning you get paid on a regular schedule?
select a response.
○ bonds
○ stocks
○ cash equivalents
○ real estate
Bonds are fixed - income investments. When an investor buys a bond, the issuer (such as a government or a corporation) agrees to pay periodic interest (coupons) at a fixed rate on a regular schedule (e.g., semi - annually, annually) and return the principal at maturity. Stocks represent ownership in a company and their returns (dividends and capital appreciation) are not fixed or paid on a regular, guaranteed schedule. Cash equivalents are short - term, highly liquid investments, and their returns are not in the form of regular fixed income like bonds. Real estate investments generate income through rent (which can be variable) and appreciation, and the income is not as strictly fixed - schedule as bond interest.
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A. Bonds