Pre-funded Interest: An investment strategy in which interest payments are funded up-front, allowing investors to receive interest payments before they actually invest their money. This strategy can be beneficial for investors as it provides a guaranteed return on their investments regardless of market conditions. It is also less risky than other types of investments since the investor does not bear any of the future credit risk associated with lending money. Pre-funded interest can be an attractive prospect for investors looking to maximize their returns in a relatively low-risk manner.