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Bullet

• Is a type of credit security which repays the entire principal on the maturity date. Prior to the maturity or prepayment of the bond, interest payments are to be made in accordance with the payment schedule. Treasury and Corporate bonds pay off in lump sum principal amounts whereas many mortgages pay off on an amortization basis.

 
 Embedded terms in definition
 Amortization
Basis
Bond
Corporate bonds
Corporate bond
Credit
Interest payments
Interest
Maturity date
Maturity
Prepayment
Principal amount
Principal
Security
Type
 
 Referenced Terms
 Term bond: A bond issue in which all bonds mature at the same time.Often referred to as Bullet-maturity bonds or simply bullet bonds, bonds whose principal is payable at maturity. Related: serial bondsIs a newly issued municipal bond with one stated maturity. This compares to Serial Bonds.

 Window contract: A guaranteed investment contract purchased with deposits over some future designated time period (the window ), usually between 3 and 12 months. All deposits made are guaranteed the same credit rating. Related: Bullet contract.

 
 Related Terms
 Bullet contract
Bullet loan
Bullet loan or security
Bullet strategy

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