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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Balloon Loan

Definition:

What happens when your sister gives you her balloon to hold at the fair.

Also, a loan where you make a steady stream of payments and a then a big, final payment. It's easy to remember this one: think of the long period of payments as the string on a balloon and the final payment as the big round balloon.