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Payment in kind

• Refers to securities that make payments in more securities of the same kind. For example, the hypothetical QWERT Corporation issues bonds due in 20xx with a 10 percent coupon. Then on the interest date, it issues additional securities as payment with terms similar to the initial offering. Generally, it is a technique to reduce temporarily cash outflows.

 
 Embedded terms in definition
 Cash
Corporation
Coupon
Interest
Securities
 
 Related Terms
 

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