Glossary of Municipal Securities Terms

FIXED INCOME SECURITY

A security evidencing an indebtedness on the part of theĀ obligor and having the basic characteristic of providing for periodic payments of interest and repayment on a specified date of theĀ principal amount of the security. Certain forms of indebtedness that do not provide for periodic payments of a fixed amount of interest income (e.g., variable rate demand obligations, zero coupon bonds) nonetheless generally are considered to be fixed income securities.

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