InvestorWords.com

A provision that allows a borrower to prepay the remaining fixed rate term debt. However, the borrower has to make an additional payment that is derived from a formula based on the net present value of the future debt payments. This can often be significant, which is why such provisions are rarely invoked.

• The FTC and the Economy
• Overview of Online Banking and Related Issues
• Water Cooler Advice vs. A Financial Planner... No contest
• Corporate Bonds
• "Buy Call" Option Investment Strategy
• A Safe Retirement - Custodians, Rollovers, and IRAs

Featured Advertiser