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 a type of fixed - income investment. When an investor buys a bond, they are essentially lending money to the bond issuer (such as a government or a corporation). The issuer agrees to pay the investor a fixed amount of interest (coupon payments) at regular intervals (e.g., 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 to be paid at regular intervals) and capital appreciation.
Cash equivalents are highly liquid, short - term investments. They do not typically provide a regular income stream in the same sense as bonds.
Real estate investments can generate income through rent, but the income is not as regular and fixed as the coupon payments of bonds.
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Bonds