fixed-income security(redirected from Fixed-Dollar Obligation)
A security with a guaranteed return. Common examples include bonds, which pay periodic coupons representing a certain interest rate, and preferred stocks, which are legally required to receive a specified dividend at certain times. Typically, fixed-income securities offer lower risk and lower returns than common stock and similar investment vehicles.
A security, such as a bond or preferred stock, that pays a constant income each period. Price changes in a fixed-income security are caused primarily by changes in long-term interest rates.