Amortizing loan
In banking and finance, an amortizing loan is a loan where the principal of the loan is paid down over the life of the loan (that is, amortized) according to an amortization schedule, typically through equal payments. Similarly, an amortizing bond is a bond that repays part of the principal (face value) along with the coupon payments. Compare with a sinking fund, which amortizes the total debt outstanding by repurchasing some bonds. An accumulated amortization loan represents the amount of amortization expense that has been claimed since the acquisition of the asset.
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Amortizing loan
In banking and finance, an amortizing loan is a loan where the principal of the loan is paid down over the life of the loan (that is, amortized) according to an amortization schedule, typically through equal payments. Similarly, an amortizing bond is a bond that repays part of the principal (face value) along with the coupon payments. Compare with a sinking fund, which amortizes the total debt outstanding by repurchasing some bonds. An accumulated amortization loan represents the amount of amortization expense that has been claimed since the acquisition of the asset.
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In banking and finance, an amo ...... the acquisition of the asset.
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In banking and finance, an amo ...... the acquisition of the asset.
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Amortizing loan
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