fixed-rate debt
[FꞮKST reɪt dɛt]
nounpl: fixed-rate debts
dívida com taxa fixa
1. A loan or bond obligation where the interest rate remains constant throughout the entire loan period, regardless of market conditions
The company issued fixed-rate debt to finance its expansion, locking in a 5% interest rate for the next 10 years.
A empresa emitiu dívida com taxa fixa para financiar sua expansão, bloqueando uma taxa de juros de 5% pelos próximos 10 anos.
2. Debt instrument where the borrower pays the same interest amount at regular intervals until maturity
Fixed-rate debt provides predictability for budgeting purposes since payments remain constant.
A dívida com taxa fixa oferece previsibilidade para fins orçamentários, já que os pagamentos permanecem constantes.
Fixed-rate debt is a fundamental financial instrument in both Brazil and the USA. In the American context, it's particularly common in mortgage lending and corporate bonds. In Brazil, fixed-rate debt became more prevalent with economic stabilization post-1994 (Real Plan). The concept is crucial for financial planning in both countries, though Brazilian companies often prefer fixed-rate instruments due to historical inflationary concerns and currency volatility.
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