With most types of bonds the interest payments and the amount you receive at maturity are
both fixed over the life of the bond.
Not exact matches
At some point in your
life, you may have had to make a series
of fixed payments
over a period
of time — such as rent or car payments — or have received a series
of payments
over a period
of time, such as interest from
bonds or CDs.
As with most
fixed - income securities, zero coupon
bonds offer investors a high degree
of safety when held to maturity and the opportunity to earn compound interest
over the
life of the
bond.
On the other hand, a variable interest rate is not
fixed over the
life of the loan, and is typically tied to a financial index, which itself is a measure
of how well stocks,
bonds, and other market conditions are doing.
Alternatively, if you prefer the probability
of under performance
over the guarantee
of a
fixed interest rate, a variable
life insurance policy with sub-accounts invested in equities and
bonds may possibly make more common sense for you.
At the end
of 2016, Americo Financial
Life and Annuity Insurance Company had
over $ 6.3 Billion in assets, with investment grade
bonds making up 96 %
of the companies
fixed income investments.