Define the Following Terms

question 60

Essay

Define the following terms:
(a)perpetuity
(b)annuity
(c)growing perpetuity
(d)growing annuity

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Definitions:

Coupon Rate

The annual interest rate paid by a bond's issuer to its holders, usually expressed as a percentage of the bond's face value.

Yield

The income return on an investment, such as the interest or dividends received, expressed as an annual percentage.

Coupon Rate

Interest rate on a bond paid each year, represented as a percentage of its face value.

Yield

The income return on an investment, such as the interest or dividends received, expressed as an annual percentage of the investment's cost.