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Updated over 9 years ago,
Does this type of financing term exist?
I would like to borrow a sum of money whereby I pay the interest monthly or quarterly, and pay the full principle back at maturity along with the final interest payment.
For example, a 5% monthly-pay $100K loan for 5 years would be paid back as follows: 60 $416.67 monthly interest payments, plus the return of $100K on the 60th month.
Do the above terms (forgetting the interest rate) exist anywhere? If so, where?
BTW, this payment scheme is how a typical fixed-rate bullet bond contractually pays.
Thanks.