Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
The interest on serial bonds, which are bonds that gradually mature at regular intervals until the whole issue matures. It is called balloon interest because it gradually rises over the life of the bond issue. See also: Balloon Maturity.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
A higher interest rate received on the longer maturity bonds of a serial bond issue.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.