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.
bond-basics
Interest
The amount of compensation for the use of borrowed money paid to the bondholders by the Issuer or the Borrower. The amount of Interest paid by the Issuer or the Borrower is based on the Interest Rate for the Bond and the time between each Interest Payment Date.
Preparing Bonds
Learn about over various terms and concepts that may arise while preparing a bond issue.
See Also
Interest Payment Dates
The dates when interest on a bond is payable, usually semiannually and usually on the first or fifteenth day of the month.
Principal
The face amount or par amount of a bond, not including interest, payable on its maturity date.
Start with the Bond Basics
Hundreds of Terms and Concepts
Pricing
In a competitive sale, it is the term used for when the bids on the bonds are received by the issuer. In a negotiated sale, it is the term used for the process and result of the determination by the underwriter(s) and the issuer of the Interest Rates and public offering prices at which the bonds…