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Question
quiz
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 a type of fixed - income investment. When an investor buys a bond, they are essentially lending money to the bond issuer (which can be a government or a corporation). The issuer agrees to pay the investor a fixed amount of interest (coupon payments) at regular intervals (such as semi - annually) and return the principal amount at the bond's maturity date.
Stocks represent ownership in a company. The return on stocks comes from dividends (which are not guaranteed and not on a fixed schedule in many cases) and capital appreciation.
Cash equivalents are highly liquid, short - term investments. They are mainly used for preserving capital and providing quick access to cash, rather than providing a regular fixed income.
Real estate investments can generate income through rent, but the rental income can be variable due to factors like vacancy rates, maintenance costs, and market conditions.
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Bonds