A type of security that gives a fixed stated interest payment once or twice per annum. They include *gilt-edged securities, “:bonds, *preference shares, and *deben tures: as they entail less risk than *equi ties they off er less scope for capital appreciation. They do, however, often give a better *yield than equities. The prices of fixed -interest secu rities tends to move inversely with the general level of interest rates,.reflecting changes in the value of their fixed yield relative to the market. Fixed-interest securities tend to be particularly poor investments at times of high inflation as their value does not adjust to changes in the price level. To overcome this problem some gilts now give index-linked interest pay ments.
