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Is the government bond the same as the fixed income securities?
Wiki User
∙ 14y ago
Fixed Income Securities are investments in which the income or interest earning is fixed and can be predicted accurately. Bonds & Debt Mutual funds would come under Fixed Income Securities.
Government Bonds are also one among the many Fixed Income Securities available for us to invest.
Wiki User
∙ 14y ago
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Def of fixed income?
A simpler answer: fixed income securities are bonds. These are "IOUs" where someone borrows your money and pays you interest, which is like "rent" on your money while they have the use of it. Hopefully, they will repay what they borrowed after the end of the loan term (this is called the "maturity date.") The oldest bond joke: "What's the difference between bonds and bond portfolio managers?" Answer: "In time, bonds mature." If there is risk that the borrower will not repay the loan, you will be paid a higher interest rate, and the greater the risk, the higher the interest rate on the bond. Bonds are issued by all levels of government, as well as by corporations. Home mortgages are also collected and the payments are used to pay bonds issued against them. There are more bonds than there are stocks, and the bond market is much larger than the stock market. Fixed-income securities are investments where the cash flows are according to a predetermined amount of interest, paid on a fixed schedule. The different types of fixed income securities include government securities, corporate bonds, commercial paper, treasury bills, strips etc.
What are some types of income bonds?
Bonds are sometimes referred to as 'fixed-income securities' because the money a bond provides to it's investor is 'fixed' or 'pre-determined'. Types of income bonds include U.S. Treasury, Agency, Municipal, High Yield, and Corporate.
Why would one need debt securities?
Most debt securities are traded electronically. Debt securities are usually in the form of bonds. They can be a government sponsored bond, corporate bond, or a municipal bond.
Investment in government securities are fixed assets or current assets?
Is investment in government bond ,government securities, other asset ,investment in equity share and leasehold land are they a fixed asset of current asset please identify these all please need help on these.
Why are government securities popular invesments?
For their supposed security. That is, the likelihood of a government default on a bond is significantly less than that any other type of bond. So, people who want as close to an absolute guaranty that their investment will pay what it says use government bonds. In addition, in many cases, government bonds provide tax incentives; for instance, in the United States, many government securities are free from Federal Income tax on their gains.
What is the corporate bond market?
The bond market (also known as the credit, or fixed income market) is a financial market where participants can issue new debt, known as the primary market, or buy and sell debt securities, known as the Secondary market, usually in the form of bonds.
Which investment has the most predictable source of income?
A fixed income bond, especially one issued by a highly reliable source such as a government. Due to the low risk of variation, these also tend to provide low income levels.
What government securities can be sold back to the Treasury Department early for a penalty?
u.s savings bond
Which of these government securities can be sold back to the Treasury Department early for a penalty?
u.s savings bond
What is bond washing transaction?
A bond-washing transaction is a transaction where securities are sold sometime before the due date of interest and reacquired after the due date is over. This practice is adopted by persons in the higher income group to avoid tax by transferring the securities to their relatives/friends in the lower income group just before the due date of payment of interest. In such a case, interest would be taxable in the hands of the transferee, who is the legal owner of securities.
What is the difference between a bond a stock and a mutual fund?
A bond is a security that has a fixed face value (par), that provides income (interest) on a periodic basis (quarterly, six monthly) at a fixed coupon on the face value. The security's price, at any point in time, varies inversely with the prevailing interest rate. A bond is effectively a loan to the company. A stock is a security representing part ownership in a company. Its value is tied to the fortunes of the company and the vagaries of the stock market. Income may be derived from dividends but this is at the discretion of the company's board of directors. A mutual fund is a basket securities that may contain bonds, stocks and other securities. A mutual fund is managed by professional portfolio managers for a fee and sold to investors.
Difference between fixed income and equity?
Equity investments usually consist of stocks that are traded on the stock exchanges, or stock mutual funds where the money of a large number of investors is pooled and spread over a number of different stocks. Fixed-income investments include vehicles like corporate or government bonds or bond mutual funds. Bank certificates of deposit (CDs) and savings accounts that feature a fixed interest rate are also considered to be fixed-income investments.
