BU233 Lecture Notes - Investment Banking, Cash Flow, Inverse Relation
Document Summary
A payment stream that is the same for a limited number of consecutive periods. It is the interest which is calculated not only on the initial principal but also on the accumulated interest of prior periods. Q4: the rate of interest agreed upon contractually charged by a lender or promised by a borrower is the __________ interest rate. Q5: a local brokerage firm is offering a certificate of deposit for ,000. At maturity, three years from now, the investor will receive ,049. The interest rate that is closest to the rate of return on this investment is ________ percent. A stream of equal payments that are made at the beginning of each period. Q7: entertainer"s aid plans five annual colossal concerts, each in a different nation"s capital. The concerts will raise funds for an endowment which would provide the world wide hunger fund with. The endowment will be given at the end of the sixth year.
