What Is an Amortized Bond? An amortized bond is one in which the principal (face value) on the debt is paid down regularly, along with its interest expense over the life of the bond. A fixed-rate residential mortgage is one common example because the monthly payment remains constant over its life of, say, 30 years.
What Is an Amortizing Swap? An amortizing swap is an interest rate swap where the notional principal amount is reduced at the underlying fixed and floating rates. Key Takeaways An amortizing swap is an interest rate swap where the notional principal amount is reduced at the underlying fixed and floating rates.An amortizing swap is a
What Is Net Amount at Risk? The net amount at risk is the monetary difference between the amount of money paid out for a life insurance policy and the accrued cash value paid for it by the insured individual. The net amount at risk number is critical to insurance companies as it represents how much
What Is Amount Financed? Amount financed is the actual amount of approved credit extended to a borrower in a loan from a lender, and if accepted, requires repayment by the borrower. Key Takeaways The amount financed is the amount of credit made available to a borrower in a loan that requires repayment. The amount financed
What Is Amount Realized? Amount realized is the total amount received from a sale transaction. It factors in cash, the fair market value (FMV) of any assets, existing liabilities, as well as sales expenses. Key Takeaways Amount realized is the total amount received from a sale transaction.It encompasses all forms of compensation, including cash, the
What Is an Alternative Mortgage Instrument (AMI)? An alternative mortgage instrument (AMI) is any residential mortgage loan that deviates from standard mortgage practices. For instance, it may be a mortgage that is not fixed-rate, fully amortizing, has monthly or periodic payments, or a standard term of repayment. Sometimes, an AMI is a loan with real
What Is an Alternative Depreciation System (ADS)? An alternative depreciation system (ADS) is one of the methods the Internal Revenue Service (IRS) requires taxpayers to use to determine the depreciation allowed on business assets. An ADS has a depreciation schedule with a longer recovery period that generally better mirrors the asset’s income streams than declining
What Is Alternative Dispute Resolution (ADR)? Alternative dispute resolution (ADR) is, in an insurance sense, a number of disparate processes used by companies to resolve claims and contractual disputes. Insured clients who are denied a claim are offered this course of action as a form of recourse. It is employed to avoid expensive and time-consuming litigation
What Is the Alternative Fuels Tax Credit? The alternative fuels credit is a non-refundable tax credit awarded to taxpayers who use non-alcohol alternative fuels that are either sold commercially by the taxpayer or used in the taxpayer’s vehicles for business. Tax Deductions Vs. Tax Credits Understanding the Alternative Fuels Tax Credit The alternative fuels credit
What Is the Alternative Investment Fund Managers Directive (AIFMD)? The Alternative Investment Fund Managers Directive (AIFMD) is a European Union (EU) regulation that applies to alternative investments, many of which were left largely unchecked prior to the 2008-09 global financial crisis. The directive sets standards for marketing around raising private capital, remuneration policies, risk monitoring
