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Investing for Steady Returns: The World of Fixed Income Securities

The biggest hurdle with this investment is grasping how they work though. The good news is that once you understand the basics, the rest falls into place.

Types Of Fixed Income Securities

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T-bills are sold at a discount, offering investors lower purchase prices and full face value at maturity.

Treasury Bill

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A zero-coupon bond is a bond that does not pay interest. Instead, it sells at a deep discount to par value.

Zero-Coupon Bonds

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While not a typical fixed-income investment, bank CDs qualify. When you invest in a CD, the bank uses your funds to issue loans to other customers.

Certificates Of Deposit

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International bonds are issued by foreign governments or corporations, offering higher yields due to added risks tied to foreign investments.

International Bonds

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When investing in corporate bonds, know there are two main types, investment grade bonds and non-investment grade bonds, or junk bonds.

Corporate Bond

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Investing in fixed-income securities is an excellent choice for many, especially those seeking low-risk alternatives to stocks and a reliable income source.

Conclusion:

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