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Medium-Term Note (MTN)

Definition - What does Medium-Term Note (MTN) mean?

A medium-term note is a fixed note that is repaid within five to 10 years. This is usually seen in bonds. It is a way for companies to legally raise capital by issuing debt security bonds on a regular basis. When a medium term note is issued, the issuing company is legally obliged to comply with SEC regulations and report the existence of the issuance.

Justipedia explains Medium-Term Note (MTN)

A medium-term note can be shorter than five years and can offer fixed or floating interest rates. The reason that a financial institution or company would choose to issue a medium-term note is due to the ability to then offer a range of different securities without having to apply to the SEC each time to do so. In essence, it is a blanket finance that allows legal transfers to be made under it in different amounts and terms.

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