ARE YOU WILLING TO INVEST IN FIXED INCOME SECURITIES? WHY OR WHY NOT?

(5-6
Sentences Highlight strong points in your answer)
Because it is still an investment, I am willing to invest in fixed income securities. On any banking
day, I can buy and sell fixed income assets. Regardless of market fluctuations, the income
stream is fixed. Also works as a hedge against market volatility or large swings, ensuring that
the investment's absolute value is preserved. They provide a low-risk source of passive income
since they are less susceptible to macroeconomic hazards such as economic downturns. Lastly,
it is one of the easiest type of investment to learn unlike the other forms.
2. HOW CAN YOU INVEST IN FIXED INCOME (3-5 sentences)
SECURITIES? 
First thing to do is to learn the basics of trading and investing. Then, inquire to the banks and
open an account or install a trading application and fill out the required forms. Next, an
individual investor can now purchase a single bond from the government or corporation or other
fixed income security. However, building a diverse portfolio of individual bonds may need a
large of assets. In other words, it requires high minimum investment, having high transaction
costs and a lack of liquidity in the bond market. But individuals can still invest in fixed income
through mutual funds and exchange traded funds with low risk and convenient to the investors.

3. AS A FUTURE CFMP, IF YOU WERE A FIXED

INCOME TRADER IS IT BETTER TO TAKE
RISKS OR TO BE RISK-AVERSE? WHY OR WHY NOT ( 5- 10 SENTENCES Highlight
strong points in your answer)
As a future CFMP and a fixed income trader, I should consider whether to be a risk taker or risk-
averse. Fixed income securities are known for minimal risk and is suitable for investors who do
not want much risk. In other words, it is better to be a risk-averse considering that it does not
give really high returns. Fixed income securities focus on capital preservation as well as income
generation such as interest received by the investors. Though returns may not be big as long as
income will surely arrive.

4. YOU ARE GIVEN A SITUATION WHERE YOU

HAVE A CERTAIN AMOUNT TO INVEST.
LEARNING FIXED INCOME SECURITIES,
WHAT ARE THE FACTORS YOU CONSIDER
BEFORE INVESTING THE MONEY? (give at least 3 factors and explain)

Changes in Interest rate

A change in the current interest rate is the biggest risk that can affect bond prices. Bond prices
and interest rates are inversely proportional. Bond prices decrease as interest rates climb. This
is because investors can obtain bonds with a higher interest rate, lowering the value of a
previously issued bond.
Credit or Default Risk
There's a chance that the issuer will go bankrupt and be unable to meet its interest and principal
obligations. High-yield bond issuers have increased credit risk because they are more likely to
default. Such bonds frequently pay higher interest rates to compensate investors for the
additional risk.
Evaluate the comfort zone in taking the risk
Every investment has some level of risk. If you want to invest in securities such as stocks,
bonds, or mutual funds, you should be aware that you could lose some or all of your money.
They are some securities that are not normally covered by the government. You risk and may
lose your principal, or the money you've put in. Even if you buy your investments from a bank.