CH -2
FIXED INCOME SECURITIES
Fixed-Income securities are debt instruments that pay a fixed amount of
interest—in the form of coupon payments—to investors. The interest
payments are typically made semiannually while the principal invested
returns to the investor at maturity. Bonds are the most common form of
fixed-income securities.
Types Of Fixed Income Securities
 DEBENTURES
 BOND
 PREFERENCE SHARES
 T- BILLS
 CPs
 CERTIFICATE OF DEPOSIT
 BANK DEPOSITS
 SMALL SAVING SCHEMES
What is a debenture in simple terms?
A debenture is a type of debt instrument that is not backed by
any collateral and usually has a term greater than 10 years.
Debentures are backed only by the creditworthiness and reputation
of the issuer. Both corporations and governments frequently issue
debentures to raise capital or funds.