Fixed income security is an instrument which provide the cash flow periodically over the life span of the instrument. The return of the fixed income security is relatively more stable compare with some other investment as it provides stable cash flow rather than greater volatility of price differences like stocks.

Required:

Explain ONE(1) of the fixed income securities that you familiar with appropriate illustration and discuss the effects of default on such security to the financial market.

Note:

Please Well explanation with appropriate illustration. Explanation is logic with appropriate supporting theory.