Which of the following is a fixed-interest security issued by governments and institutions?

A fixed-interest security is a financial instrument that typically pays a fixed rate of interest over a specified time period. In this context, a bond is the correct answer, as it represents a loan made by an investor to a borrower, usually a corporation or government. The bond issuer agrees to pay back the principal amount on a specified maturity date along with periodic interest payments, known as coupon payments.

Governments and institutions frequently issue bonds as a means of raising capital for various purposes, such as funding infrastructure projects or managing budget deficits. The fixed interest associated with these securities makes them an attractive option for investors seeking stable income.

Common stock and preferred stock, while both types of equity, do not guarantee fixed interest payments. Common stock represents ownership in a company and may pay dividends, but these dividends can fluctuate based on the company's performance. Preferred stock has priority over common stock in terms of dividend payments and claims on assets, but it typically does not offer fixed interest like a bond does. Similarly, Treasury bills (T-bills) are short-term government securities that do not pay interest in the conventional sense, as they are sold at a discount and mature at face value, with the difference being the investor's return.

Thus, bonds are the primary fixed-interest