| Installment
Loan: An obligation
to repay monies borrowed
at fixed intervals
over time. |
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| Institutional Investor:
A financial institution such as a mutual fund, insurance
company, or pension fund that purchases securities in
large quantities. |
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| Insurance:
Type of guarantee in which any agency pledges the use
of accumulated insurance premiums to offset the cost of
default on the part of borrowers. "Loan insurance" is
considered the equivalent of a "loan guarantee." |
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| Intelligent Transportation Systems:
The application of advanced electronics and communication
technologies to enhance the capacity and efficiency of
surface transportation systems, including traveler information,
public transportation, and commercial vehicle operations.
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| Interest
Method:
Method used to amortize
the premium or discount
of an investment in
bonds, or to amortize
the subsidy cost allowance
of direct loans. Under
this method, the amortization
amount of the subsidy
cost allowance equals
the effective interest
minus the nominal
interest of the direct
loans. The effective
interest equals the
present value of the
direct loans times
the effective interest
rate (the discount
rate). The nominal
interest equals the
nominal amount (face
amount) of the direct
loans times the stated
interest rate (the
rate stated in the
loan agreements).
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| Interest
Subsidy:
A subsidy provided
by a financial institutions
(such as multi-lateral
lenders, state infrastructure
banks, or export credit
agencies)f to lower
overall financing
costs for project
sponsors. With this
tool, project sponsors
repay loans at less
than current market
rates. Market rates
may be determined
by the cost of borrowing
through conventional
issues of comparable
duration. |
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| Interest:
Sum paid or calculated for the use of capital. Financing
interest is the charge assessed as a cost of extending
credit as distinguished from additional interest which
is the charge assessed on delinquent debts in order to
compensate the federal government for the time value of
money owed and not paid when due. Additional interest
is accrued and assessed from the date of delinquency.
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| Investment Grade:
Describes the top four rating categories of relatively
secure bonds suitable for a conservative investor. Standard
& Poor's rating service looks upon all bonds between the
AAA and BBB ratings as investment grade. Generally speaking,
any bonds rated below BBB are considered to have speculative
features and are deemed sub-investment grade or junk bonds.
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