balloon interest

In the context of serial bond issues, the elevated coupon rate on bonds with late maturities ( maturity). Bloomberg Financial Dictionary

Financial and business terms. 2012.

Look at other dictionaries:

  • Balloon Interest — An increased coupon rate on the longer term maturity instruments within a serial bond issue. In a serial issue, bonds mature at different intervals, creating a string of short to long term instruments. Higher interest is earned on the long term… …   Investment dictionary

  • balloon — Ⅰ. balloon UK US /bəˈluːn/ noun [C] FINANCE ► a type of loan that is paid back in regular small payments with a final larger payment: »What we re seeing are interest only, balloon mortgages with no money down. »Only select a balloon over an… …   Financial and business terms

  • balloon — bal·loon adj: being or having a final installment that is much larger than preceding ones in an installment or term loan a balloon payment ◇ In contrast to an amortized loan, a balloon loan is generally repaid in periodic payments of interest and …   Law dictionary

  • balloon note — n. A promissory note in which the interest is paid in periodic installments and then the remainder of the principal is paid in one lump sum at the end of the term. The Essential Law Dictionary. Sphinx Publishing, An imprint of Sourcebooks, Inc.… …   Law dictionary

  • Balloon payment mortgage — A balloon payment mortgage is a mortgage which does not fully amortize over the term of the note, thus leaving a balance due at maturity.Wiedemer, John P, Real Estate Finance, 8th Edition , p 109 110] The final payment is called a balloon payment …   Wikipedia

  • Balloon Loan — A type of loan which does not fully amortize over its term. Since it is not fully amortized, a balloon payment is required at the end of the term to repay the remaining principal balance of the loan. Balloon loans can be attractive to short term… …   Investment dictionary

  • Balloon payment — The phrase balloon payment or bullet payment refers to one of two ways for repaying a loan; the other type is called amortizing payment or Amortization (business) .With a balloon loan , a balloon payment is paid back when the loan comes to its… …   Wikipedia

  • balloon flight — ▪ aviation Introduction  passage through the air of a balloon that contains a buoyant gas, such as helium or heated air, for which reason it is also known as lighter than air free flight. Unmanned balloons have been used to carry meteorological… …   Universalium

  • Balloon boy hoax — The balloon boy hoax occurred on October 15, 2009 in Fort Collins, Colorado, when Richard and Mayumi Heene allowed a gas balloon filled with helium to float away into the atmosphere, and then claimed that their six year old son Falcon was inside… …   Wikipedia

  • Interest Due — The portion of a current mortgage payment that is comprised of interest on the remaining principal amount. In a standard amortizing mortgage, the first payments will go mainly toward interest due, with only a small percentage of the payment going …   Investment dictionary

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