bond-basics

Debt Service

The amount of Principal and Interest required to be paid on an Issue of Bonds. Debt Service on any payment date is composed of Accrued Interest on the Bonds and any Principal due on that payment date.


See Also

Sinking Fund

A fund to which the issuer or the conduit borrower periodically makes payments or in which revenues from a project are periodically deposited for purposes of paying the debt service on a bond issue. 

Accrued Interest

The dollar amount of Interest due on a Bond, computed at that Bond’s Interest Rate, from the last Interest Payment Date to the date of calculation.

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Verification Report

A document that verifies the mathematical accuracy of information needed to support bond counsel’s conclusions that an advance refunding bond issue is a tax-exempt bond issue and/or that refunded bonds are defeased.