Fixed Income

Fixed-Rate Bond

Definition

What is Fixed-Rate Bond?

A bond whose coupon rate remains unchanged for its stated life.

Example in practice

A seven-year bond pays a fixed 14% coupon each year.

Keep learning

A debt security through which an investor lends money to an issuer in return for promised payments.

The government, company, or organisation that creates and sells a security.

The principal amount stated on a bond and usually repaid at maturity.

A short-term government debt instrument usually issued at a discount and repaid at face value.

Think you know your investing terms?

Put your knowledge to the test with a quick quiz.