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ordinary annuity

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Ordinary Annuity

A series of fixed payments made at the end of each period over a fixed amount of time.

Notes:

An ordinary annuity is essentially a level stream of cash flows for a fixed period of time. Straight bond coupon payments are normally referred to as ordinary annuities.

See also: Annuity, Annuity Due, Bond, Coupon, Immediate Payment Annuity, Lease, Variable Annuity

ordinary annuity

An annuity that makes payments at the end of each period. Compare annuity due.

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