Medium-term note (MTN)

A corporate bond that is offered continuously to investors by an agent of the issuer.

Issuers provide maturity ranges for MTNs they wish to sell, and provide yield quotes for those ranges.

Investors interested in purchasing the notes make an offer to the issuer’s agent, specifying the face value and an exact maturity within one of the ranges offered. The agent then confirms the issuer’s willingness to sell those MTNs and effects the transaction.

This feature gives the borrower maximum flexibility for issuing securities on a continuous basis.

Note: MTNs are not necessarily medium-term in maturity.

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