WORD OF THE DAY: DEMAND NOTE - A promissory note that calls for principal to be payable on demand. More recently, courts have significantly restricted the circumstances under which a bank could make and enforce a demand for repayme ... More
1. ) refers to the cost of debtservice paid by a borrower or issuer to a lender or investor. The rate is expressed as an annual percentage of the amount borrowed. For some notes and bonds that pay interest semiannually, the semiannual interest due to the investor used to be evidenced by a coupon that could be detached and sent for collection. Thus the cost to the issuer for notes and bonds paying semiannual interest is often called the coupon rate. Lenders or investors may receive a yield that is higher or lower than the rate.
Fund Letters
