Fixed Income
Fixed income is a term used to describe investments such as federal bonds, provincial bonds, corporate bonds and guaranteed investment certificates. These types of investments are structured to have a predetermined stream of fixed payments and then have the eventual return of principal at maturity. Coupons and residuals, also known as strip bonds, are also considered fixed income but are purchased at a discount to their maturity value and do not pay periodic payments. Coupons and residuals are most suitable for registered accounts. Fixed Income investments are generally considered lower risk than equity investments.
