Sovi.AI - AI Math Tutor

Scan to solve math questions

QUESTION IMAGE

sc financial math cr sem b investments identify the fixed investment fr…

Question

sc financial math cr sem b
investments
identify the fixed investment from the described scenarios.
a savings account with an interest rate that changes based on the banks policies
a bond that pays a fixed interest rate and repays the principal at a set maturity date
a mutual fund that invests in various stocks and bonds with variable returns
a property investment where income depends on rental agreements and property value

Explanation:

Brief Explanations

A fixed - investment is one where the return is relatively stable. A savings account with a variable interest rate is not fixed. A mutual fund with variable returns is not fixed. A property investment with income depending on various factors is not fixed. A bond that pays a fixed interest rate and repays principal at a set maturity date has a predictable return structure and is a fixed - investment.

Answer:

a bond that pays a fixed interest rate and repays the principal at a set maturity date