What does effective rate means

Modified on Mon, 5 Dec, 2022 at 10:17 PM

PeerPower's crowdfunding bond follows an effective rate, meaning investors will receive both the principle and interest in the same payment which results in the reduction of the outstanding payment to the investor. 

The advantage of the effective rate bond means that investors could use the principle money to reinvest every single month and reduce the risks of default from the bond issuer given a portion of the principle has already been paid during each given payment period. 

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