exam 2

the rate of intrest the bondholder actually earns on a bond. If sold at discount it exceeds the stated rate, if sold at a premium it is lower than the stated rate

the accumualted total that results from a series of equal deposits invested at compound intrest

the annual interest rate stated on a financial instrument.

the annual intrest rate stated on a financial instrument

an annuity in which each rent is payable/ receivable at the end of the period

intrest on principla only regardless of intrest that may ahve occured in past periods

the amount borrowed or invested

the process of reducing the amount or values of cash flows from the future to the present, making the present value less than the future amount

value at a later date of a single sum that is invested at compound intrest

an annuity in which the rents begin after a specific number of periods

the preferred procedure for computing the amortization of a discount or premium.

the annual intrest rate stated on a financial instrument

the pure rate of return plus the expected inflation rate. typically meassured by the return on a low risk security

method of caluculating present value that uses a range of cash flows and incorporates the probability of those cash flows to provide as accurate as apossible measure of expected future cash flows

the relationship between time and money

intrest that accrues on both the principal and the intrest earned in past periods

an annuity in which each rent is payable/ receivable at the beginning of the period

a series of payments or receipts that occur at equal intervals

payment for the use of someone else's money. it is the excess cash received/ repaid over and above the amount lent/ borrowed

the value at an earlier date of a given future sum discounted at compound intrest