Definition of 'Fixed-Income Security' An investment that provides a return in the form of fixed periodic payments and the eventual

return of principal at maturity. Unlike a variable-income security, where payments change based on some underlying measure such as short-term interest rates, the payments of a fixed-income security are known in advance. Investopedia explains 'Fixed-Income Security' An example of a fixed-income security would be a 5% fixed-rate government bond where a $1,000 investment would result in an annual $50 payment until maturity when the investor would receive the $1,000 back. Generally, these types of assets offer a lower return on investment because they guarantee income.

Fixed-Income Toolbox provides functions for fixedincome modeling and analysis. The toolbox includes tools for fitting yield curves to market data using parametric fitting models and bootstrapping. You can calculate the price, rates, and sensitivities for interest rate swaps. You can also price and value other derivatives, including credit default swaps, bond futures, and convertible bonds. Fixed-Income Toolbox also includes tools for determining the price, yield, and cash flow for many types of fixed-income securities, including mortgage-backed securities, corporate bonds, treasury bonds, municipal bonds, certificates of deposit, and treasury bills