A fixed income security is an investment that provides a return in the form of fixed periodic payments, usually semi-annually, and the eventual return of principal at maturity. (For example, Government Bonds and Private Debt Securities)
Fixed income securities come in a variety of maturities, ranging from as short as 1 month to 10 years or longer. Instruments that have maturities of 1 year or less are usually discount instruments
Discount instruments are instruments where the buyer (lender of funds) pays an amount less than the face value of the paper, and gets the face value upon maturity
