What is a fixed-rate bond?

A debt instrument where the principal may be remunerated at a base rate or a higher rate. The investor therefore holds a claim (repayment of principal plus interest) which may increase subject to a condition specified in advance (the occurrence of a specific event, membership of a specific group) within the Terms and Conditions of the bonds. If the specified condition does not arise, the investor receives a return at the predetermined base rate.

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