Fixed-Interest Security

See: Fixed Rate. See: Fixed-Income Security.

When a bond has a fixed interest rate, that rate is determined in the beginning (not when God created the Heaven and the Earth, but rather when the bond was issued originally).

Like...a borrowing of $40 million at 6% is fixed. That interest rate of 6% remains as-is, whether inflation takes hold of the world and rates skyrocket...or whether there is a Depression and rates plummet. That bond interest rate is fixed. Ain't goin' nowhere.