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Fixed income investments deliver predictable, regular payments—typically in the form of interest or dividends—in exchange for lending money via a lump-sum deposit.

Bonds are debt instruments where you lend money to governments, corporations, or other entities in exchange for regular interest payments and the return of principal at maturity.

Bond prices and yields have an inverse relationship: When one rises, the other falls.

When evaluating bonds, two numbers often dominate the conversation: the coupon rate and the yield to maturity (YTM).