Meaning ABILITY TO PAY: Refers to the borrower's ability to make interest and principal payments on debts. See: Fixed charge coverage ratio.In context of municipal bonds, refers to the issuer's present and future ability to create sufficient tax revenue to fulfill its contractual obligations, accounting for municipal income and property values.In context of taxation, notion that tax rates should be determined according to income or wealth
More terms such as Ability to pay in Dictionary A.
- Definition Automated Bond System (ABS):
- Examples The computerized system that records bids and offers for inactively traded bonds until they are cancelled or executed on the NYSE ability to pay definition.
- Definition Aggregation:
- Examples Process in corporate financial planning whereby the smaller investment proposals of each of the firm's operational units are aggregated and effectively treated as a whole ability to pay explain.
- Definition Automatic Funds Transfer:
- Examples A transfer of funds from one account or investment vehicle to another using electronic or telecommunications technology ability to pay what is.
- Definition Arithmetic Mean Return:
- Examples An average of the subperiod returns, calculated by summing the subperiod returns and dividing by the number of subperiods ability to pay meaning.
- Definition Authority Bond:
- Examples government agency or a corporation created to manage a revenue-producing public enterprise. The difference between an authority bond and a municipal bond is that margin protections may be ability to pay abbreviation.
