Medium Term Note - MTN
1. A note that usually matures in five to 10 years.
2. A corporate note continuously offered by a company to investors through a dealer. Investors can choose from differing maturities, ranging from nine months to 30 years.
Investopedia Commentary
1. Notes range in maturity from one to 10 years. By knowing that a note is medium term, investors have an idea of what its maturity will be when they compare its price to that of other fixed-income securities. All else being equal, the coupon rate on medium-term notes will be higher than those achieved on short-term notes.
2. This type of debt program is used by a company so it can have constant cash flows coming in from its debt issuance it allows a company to tailor its debt issuance to meet its financing needs. Medium-term notes allow a company to register with the SEC only once, instead of every time for differing maturities.
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See also: 10-Year Treasury, Coupon, Fixed-Income Security, Long Term, Maturity, Medium Term, Securities & Exchange Commission - SEC, Short Term, Treasury Note
Also spelled: MTN
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