DEFERRED INTEREST BOND
A debt instrument that pays interest only upon maturity. Unlike most bonds, a deferred interest bond does not make periodic, or "coupon," payments over its lifetime. Instead, the interest accrues and is paid out when the bond expires (matures). A deferred interest bond can be a good choice for those looking to save money while accruing more interest than they might receive in a bank savings account or a money market fund, for example.
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Target Return
Pricing model used in valuing a business based on what an investor expects from any capital invested in the firm. It is computed by adding the amou ...
Remainder Man
An individual who receives the remaining principal in a trust account after all required payments have been made, such as those to the beneficiary ...
Average Collected Balance
The total average of the collected funds in a bank account in a month. The balance is calculated by adding the collected balance and dividing it by ...
Bankable Funds
Forms of payment that are accepted at financial institutions. Retailers and other organizations that directly accept payments from customers typica ...
Prudent-Person Rule
A legal maxim that restricts the discretion in a client's account to investments that a prudent person seeking reasonable income and preservati ...
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