Letter of credit (LOC)

Definition:

A form of guarantee of payment issued by a bank on behalf of a borrower that assures the payment of interest and repayment of principal on bond issues.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Statistical inference

A statistical method of drawing conclusions on unknown properties of a population based on a random sampling of data from that population.

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