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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Deferred Interest

Definition:

While she wanted to date him, she preferred to play "hard to get" and deferred interest when he asked her to join him on the water slide ride. Also refers to a bond where interest payments are deferred for some period of time. The deferred interest accrues its own interest, so the net payments to the bondholders will be the same. Commonly used by start-ups as a way to conserve cash.