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ordinary annuity

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Financial Dictionary

Ordinary Annuity

A series of fixed payments made at the end of each period over a fixed amount of time.

Investopedia Commentary

An ordinary annuity is essentially a level stream of cash flows for a fixed period of time. Straight bond coupon payments are normally referred to as ordinary annuities.

Related Links

Anything But Ordinary: Calculating The Present And Future Value Of Annuities
Getting the Whole Story on Variable Annuities
Passing the Buck: The Hidden Costs of Annuities

See also: Annuity, Annuity Due, Bond, Coupon, Immediate Payment Annuity, Lease, Variable Annuity

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Financial Dictionary

ordinary annuity

An annuity that makes payments at the end of each period. Compare annuity due.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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