What is commonly a characteristic of fixed-income securities?

Fixed-income securities are characterized by their cash flows that are typically fixed over time, such as coupon payments made at regular intervals. The value of these securities is inversely related to interest rates; when interest rates rise, the value of existing fixed-income securities generally falls because their fixed interest payments become less attractive compared to new securities that reflect higher rates. Therefore, option D is correct, as it highlights this fundamental relationship where the prices of fixed-income securities fluctuate in response to changes in interest rates.

This sensitivity to interest rates is a critical aspect of fixed-income analysis and underscores how fluctuations in market rates can significantly impact the market value of these securities. Understanding this relationship is crucial for risk management and investment strategies in the realm of fixed-income markets.