lock in

lock in definition - business

lock in

To guarantee, as a return or cost. For example, an investor who purchases a noncallable 10% coupon Treasury bond at par locks in a return of 10% annually until the bond matures. The Treasury also locks in a 10% cost for the funds raised through the sale of this bond issue.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.