The value of fixed-income securities: What does it means for the issuer and the

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The value of fixed-income securities: What does it means for the issuer and the investor? One of the most important asset classes for investors are fixed-income securities that consist of debt obligations, or bonds, and preferred stock. In simple terms, a fixed-income security is a financial obligation in which the borrower agrees to pay specified sum of money at specified dates. This transaction involves different groups that comprise the bond markets: issuers, underwriters, and purchasers. The entity issuing the debt obligation is the borrower in the transaction. Some of the biggest issuers in the bond market are (1) as the U.S. government and the government of U.K. (2) government-related agencies, such as Fannie Mae and Freddie Mac; (2) Coupons such , such as the state of Issuer Underwriter Purchaser California, Sakai City, Japan; (3) and The Walt Disney Co. and (4) Investment Bank and the World Bank. ,such as British Telecom, Bond Price - such as the European

Explanation / Answer

central government
municipal governments
corporations
supranational banks

When U.S> treasury yields are low and the spread between the Treasury and corporate bond yield is narrow, issuers can lock in low costs of borroing through bond issues

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widening
higher
low
fall
decreasing

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