Definitions of annuity bond
(also: annuity) an arrangement where an investor pays a lump sum to an issuer, who then continues to pay interest as long as the original investment is not repaid
The scheme provides a guaranteed income by utilizing a single premium annuity bond, which yields a high rate of interest.
an arrangement where an investor pays a lump sum to an issuer, who then repays this capital plus interest over the life of the arrangement
The JEM NSW Schools indexed annuity bond will pay principal and interest each quarter until it matures in 2031, when it will have repaid the capital.