Fixed Income

Amortising Bond

Definition

What is Amortising Bond?

A bond that repays principalThe original amount of money invested or lent, excluding later returns. in instalments before final maturityThe date when a debt investment's principal is scheduled to be repaid..

Example in practice

How This Looks in Practice

The issuer repays 20% of principal each year for five years.

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Related Terms

Fixed Income

Bond

A debt security through which an investor lends money to an issuer in return for promised payments.

Fixed Income

Issuer

The government, company, or organisation that creates and sells a security.

Fixed Income

Face Value

The principal amount stated on a bond and usually repaid at maturity.

Money Markets

Treasury Bill

A short-term government debt instrument usually issued at a discount and repaid at face value.

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