Bullet

AAA

DEFINITION of 'Bullet'

1) A one-time lump-sum repayment of an outstanding loan, typically made by the borrower after very little, if any, amortization of the loan. This can also refer to a loan that requires a disproportionately large portion (or even all) of the loan to be repaid at maturity.

2) A slang term for a letter of rejection sent to a job applicant, informing the candidate that he or she has not been offered the job, has been denied an interview or some similar form of rejection.

INVESTOPEDIA EXPLAINS 'Bullet'

1) Loans can have provisions built into them upon issuance to allow borrowers to make a one-time lump-sum repayment of the loan at their discretion. This option can prove useful for borrowers, particularly if their financial situation significantly changes for the better shortly after the loan is issued. For example, an early lump-sum repayment can considerably lower the interest expense accrued over the course of the loan.

2) Companies typically send out bullet letters once they have filled the position they had available, or (if the bullet letter denies an interview) once the company has selected its entire interview pool. In other cases, a company may simply state in the job advertisement that it will only contact applicants who are selected for an interview.

RELATED TERMS
  1. Repayment

    The act of paying back money previously borrowed from a lender. ...
  2. Bullet Bond

    A debt instrument whose entire face value is paid at once on ...
  3. Bullet GIC

    A type of guaranteed investment contract where a single payment ...
  4. Bullet Loan

    Any loan that requires a balloon payment at the end of the term ...
  5. Bullet Repayment

    A lump sum payment for the entire loan amount paid at maturity. ...
  6. Balloon Maturity

    1. A repayment schedule for a bond issue where a large number ...
Related Articles
  1. Avoiding Foreclosure Scams
    Personal Finance

    Avoiding Foreclosure Scams

  2. I've come into a large amount of money. ...
    Investing

    I've come into a large amount of money. ...

  3. Why does the majority of my mortgage ...
    Investing

    Why does the majority of my mortgage ...

  4. Lump Sum Versus Regular Pension Payments
    Retirement

    Lump Sum Versus Regular Pension Payments

comments powered by Disqus
Hot Definitions
  1. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another ...
  2. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  3. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  4. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  5. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  6. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
Trading Center