Ordinary Annuity

What Does Ordinary Annuity Mean?
A series of fixed payments made at the end of each period over a fixed amount of time.

Investopedia explains Ordinary Annuity
An ordinary annuity is essentially a level stream of cash flows for a fixed period of time. Straight bond coupon payments are normally referred to as ordinary annuities.

Filed Under: Bonds, Fixed Income, Personal Finance

Related Terms

Annuity
Annuity Due
Bond
Coupon
Immediate Payment Annuity
Lease
No-Load Annuity
Variable Annuity
More Related Terms

Related Links

Anything But Ordinary: Calculating The Present And Future Value Of Annuities - Learn to calculate the present and future value of fixed payments required from you or owed to you.
Getting the Whole Story on Variable Annuities - Variable annuities are another way to save money tax-deferred - but don't jump in blindly!
Advanced Bond Concepts: Bond Pricing - It is important to determine the price of a bond because it will indicate the yield received should the bond be purchased.
Passing the Buck: The Hidden Costs of Annuities - These may look like good retirement vehicles, but beware of fees buried in the fine print.

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