Which term is defined as long-term debt instruments with maturities over a year?

Which term is defined as long-term debt instruments with maturities over a year?

• A. Corporate Bonds
• B. Government/sovereign bonds
• C. Fixed Income
• D. Municipal bonds

Answer: (C)

Long-term debt instruments with maturities over a year fall under the fixed income universe. These securities promise a regular return of interest and the eventual repayment of principal, and they include bonds issued by corporations, governments, and municipalities. The term that encompasses this whole group is fixed income. Among the options, corporate bonds, government/sovereign bonds, and municipal bonds are specific types of fixed income securities. They illustrate the category, but the broader label that describes all of them together is fixed income. The other choices are examples of the instrument type (bonds) rather than the overall category itself.

Long-term debt instruments with maturities over a year fall under the fixed income universe. These securities promise a regular return of interest and the eventual repayment of principal, and they include bonds issued by corporations, governments, and municipalities. The term that encompasses this whole group is fixed income. Among the options, corporate bonds, government/sovereign bonds, and municipal bonds are specific types of fixed income securities. They illustrate the category, but the broader label that describes all of them together is fixed income. The other choices are examples of the instrument type (bonds) rather than the overall category itself.