Medium Term Note - MTN


DEFINITION of 'Medium Term Note - MTN'

1. A note that usually matures in five to 10 years.

2. A corporate note continuously offered by a company to investors through a dealer. Investors can choose from differing maturities, ranging from nine months to 30 years.

BREAKING DOWN 'Medium Term Note - MTN'

1. Notes range in maturity from one to 10 years. By knowing that a note is medium term, investors have an idea of what its maturity will be when they compare its price to that of other fixed-income securities. All else being equal, the coupon rate on medium-term notes will be higher than those achieved on short-term notes.

2. This type of debt program is used by a company so it can have constant cash flows coming in from its debt issuance; it allows a company to tailor its debt issuance to meet its financing needs. Medium-term notes allow a company to register with the SEC only once, instead of every time for differing maturities.

  1. Coupon

    The annual interest rate paid on a bond, expressed as a percentage ...
  2. Maturity

    The period of time for which a financial instrument remains outstanding. ...
  3. Medium Term

    An asset holding period or investment horizon that is intermediate ...
  4. 10-Year Treasury Note

    A debt obligation issued by the United States government that ...
  5. Fixed-Income Security

    An investment that provides a return in the form of fixed periodic ...
  6. Long Term

    Holding an asset for an extended period of time. Depending on ...
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