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Related Definitions

Amortized Bon

Updated on August 21, 2024

Amortized Bond is the practice in which the payment of the debt is made on a regular basis, in which the principal amount or the face value of the loan is paid consistently along with the interest over the life of the bond.

Example: Fixed rate bond in which each of the monthly payments pays off a portion of the principal and the interest on the loan over the life of the bond.

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