Loan agreements and bond indentures often require the borrower to pay a "make-whole" premium if the debt is repaid before its maturity. Designed to protect the investor's bargained-for rate of return against the risk of opportunistic refinancing in a lower interest rate environment, these premiums generally consist of a lump-sum payment based on the present value of future interest payments that will not be paid because of the early repayment of the debt, reduced by interest payments that would be received by the investor if the funds were reinvested in a comparable U.S. Treasury security.