7

Fixed-Income Investments

The previous two chapters have dealt with various equity-type investments. Yet, for most individuals, equity investments should form only part of their overall asset allocation strategy. One or more types of fixed-income securities generally should also be included. Simply stated, fixed-income investments generally promise the investor a stated amount of income periodically, and in most cases also promise to pay the face amount (principal) at the investment’s maturity date.

Fixed-income securities and investments include the following:

image  Corporate bonds

  Municipal bonds

  Marketable U.S. government obligations

  U.S. ...

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