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The payment made each period on an amortized loan is constant, and it consists of some interest and some principal.The closer we are to the end of the loan's life, the smaller the percentage of the payment that will be a repayment of principal.
Tailoring
Adjusting financial strategies or models to address specific needs or circumstances of a business or investment.
Income Stream
A series of regular payments or revenues generated over time from investments, work, or business activities.
Dividend Preference Theory
A theory suggesting that investors prefer dividends from current earnings over potential capital gains because of the perceived certainty of dividend payments.
Bird in Hand
A theory in finance that suggests investors prefer the certainty of dividend payments to the potential for future capital gains.
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