Note

Definition of 'Note'


A financial security that generally has a longer term than a bill, but a shorter term than a bond. However, the duration of a note can vary significantly, and may not always fall neatly into this categorization. Notes are similar to bonds in that they are sold at, above or below face (par) value, make regular interest payments and have a specified term until maturity.

Investopedia explains 'Note'


U.S. Treasury notes, for example, are sold in $100 increments; come in terms of two, three, five, seven and 10 years; pay interest in six-month intervals; and pay investors face value upon maturity. There are numerous types of notes, including mortgage-backed notes, unsecured notes, municipal notes, bank notes, euro notes, promissory notes, demand notes and structured notes.


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