Deferred Interest

Deferred interest is interest which is charged for a loan but does not have to be paid until a later date as per an agreement.

Certain types of bonds accrue interest but payment is deferred until the bond matures. The accrued interest is paid out to the investor at the end of the bond term.

Interest charged for loans may also be deferred, in which case the borrower must pay the entire amount of interest due after the deferral period.

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