bond-basics

Fixed Interest Rate

An Interest Rate which is set at the time a Bond is issued and which does not vary during the term of the Bond.


See Also

Interest Rate

The rate expressed as a percentage of the principal amount of a bond used to determine the amount of interest to be paid by the issuer or the borrower.


In Contrast With

Variable Interest Rate

The interest rate on a bond which varies according to a formula set forth in the bond or the indenture or bond resolution/ordinance or based on the interest rate required by a remarketing agent to remarket the bonds at par.

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Security Interest

A special legal interest in property, fixtures or revenues that exists by contract as Security for payment or performance of an obligation.