Home > Term: constant annual principal and interest repayment
constant annual principal and interest repayment
The annual payment made by a borrower, consisting of an amortization of principal and an interest component. This payment remains unchanged throughout the entire repayment period. As the debt is worked down the interest payments are gradually reduced, while the principal repayment rate increases.
- Part of Speech: noun
- Industry/Domain: Banking
- Category: Investment banking
- Company: UBS
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- Stefan K
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