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a. The act or process of amortizing.
b. The money set aside for this purpose.
2. In reckoning the yield of a bond bought at a premium, the periodic subtraction from its current yield of a proportionate share of the premium between the purchase date and the maturity date.
1. (Banking & Finance)
a. the process of amortizing a debt
b. the money devoted to amortizing a debt
2. (Banking & Finance) (in computing the redemption yield on a bond purchased at a premium) the amount that is subtracted from the annual yield. Compare accumulation3b
amortizement, amortisement n
am•or•ti•za•tion(ˌæm ər təˈzeɪ ʃən, əˌmɔr-)
also am•or•tize•ment(-ˈtaɪz mənt, əˈmɔr tɪz-)
1. an act or instance of amortizing a debt or other obligation.
2. the sums devoted to this purpose.
the paying off of a debt in equal installments composed of gradually changing amounts of principal and interest.See also: Finance
the transfer or sale of property in mortmain.See also: Property and Ownership
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|Noun||1.||amortization - the reduction of the value of an asset by prorating its cost over a period of years|
|2.||amortization - payment of an obligation in a series of installments or transfers|