Unearned interest

Definition:

Interest that has been received on a loan, but that cannot be treated as a part of earnings yet, because the principal of the loan has not been outstanding long enough.

Investing Essentials


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

Term of the Day

Nonrecourse

In the case of default, the lender has no ability to claim assets over and above what the limited partners contributed.

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