Amortizing Financial Instrument

Amortized Asset - An Amortized Asset is a financial instrument where the principal amount is gradually reduced through regular payments over the life of the asset. These payments typically include both interest and principal, leading to a decrease in the outstanding balance until the loan is fully repaid by the maturity date.

Class Information

Identification

Label (rdfs)
Amortized Asset
Preferred Label
Amortizing Financial Instrument
Alternative Labels
Amortization Loan, Amortizing Asset, Installment Payment Asset
Identifier
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Definition and Examples

Definition
An Amortized Asset is a financial instrument where the principal amount is gradually reduced through regular payments over the life of the asset. These payments typically include both interest and principal, leading to a decrease in the outstanding balance until the loan is fully repaid by the maturity date.
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Additional Information

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Deprecated
False

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