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What is the promise made by the issuer of a fixed-income security?

  • To pay interest at stated intervals only
  • To repay the maturity value only
  • To repay the maturity value and pay interest at stated intervals (correct)
  • To pay interest only at maturity
  • Which of the following is NOT a type of fixed-income security?

  • Stocks (correct)
  • Debentures
  • Mortgages
  • Bonds
  • What can issuers of fixed-income securities do to modify the terms of a basic security?

  • Change the interest rate
  • Change the repayment amount
  • All of the above (correct)
  • Change the maturity date
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