Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
10 Cards in this Set
- Front
- Back
|
discount rate
|
rate of return on a riskless investment plus a premium based on the perceived risk that expected benefits will not materialize
|
|
|
compound/present value
|
the conversion of cash flow over a period of time to a common point in time
|
|
|
compound interest
|
when the interest for each period is added to the principal and the interest for the next period is computed on the total
|
|
|
annuity
|
a series of equal cash flows that occur at the end of each period over a specified number of periods
|
|
|
annuity due
|
a series of equal cash flows that occur at the beginning of each period over a specified number of periods
|
|
|
present value of a lump sum
|
the current value of a future payment
|
|
|
present value of an annuity
|
the value at the beginning of the term of the annuity that is equivalent to the future cash flows discounted at some rate of interest
|
|
|
sinking fund
|
a fund into which the debtor makes equal periodic deposits to return the principal
|
|
|
bond usually bears
|
a $1000 principal or par value, a coupon or contract rate of interest, periodic interest payments, and a time to maturity
|
|
|
perpetuity
|
special form of annuity whose term begins on a definite date but never matures
|
