Bonds, preferred stock, and treasury bills for which the issuer pays a fixed rate of interest and, upon maturity, a fixed amount of principal. For example, an issue of bonds that pays interest at a fixed percentage rate - thus the issuer knows exactly how much money is to be paid to the bond holders on the prearranged dates. also called fixed-dollar securities.
Related information about fixed-dollar obligations:
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Conventional bonds for which the coupon rate is set at a fixed percentage of the par value. Want to thank TFD for its existence? Tell a friend about us, add a link ...
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