Fixed-income assets are characterized by predictable cash flows. Convertible bonds qualify because they have features of fixed-income securities (coupon payments and principal repayment) while also offering the option to convert into equity.
Money market securities (Option A) are short-term, high-liquidity instruments and typically not classified as fixed-income for long-term portfolio management purposes.
Preferred shares (Option B) are equity-like instruments with fixed dividend payments but lack the "fixed-income" designation for portfolio management.
Bonds with less than one year to maturity (Option D) fall under money market classifications rather than fixed income.
References: Canadian Securities Course Volume 2, Fixed-Income Securities Section.
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