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Finance Dictionary and Glossary of Investment Terms
Any large principal payment due at maturity for a bond or loan with or without a sinking fund requirement.
1. A repayment schedule for a bond issue where a large number of the bonds come due at a one time (normally at the final maturity date).2. A final loan payment that is considerably higher than prior payments.This is also known as a "balloon payment."
A repayment schedule for an issue of bonds in which a large number of the bonds come due at the same time, typically the final maturity date. This term applies only to bonds which do not have a sinking fund provision. A balloon maturity can put company cash flow under stress if adequate preparations are not made.