-In the Accompanying Figure,in the Formula in the Active Cell,why

question 35

Multiple Choice

-In the accompanying figure,in the formula in the active cell,why is B6 entered as -B6?

• A) To reflect a calculation for a reverse mortgage.
• B) To show that borrowing money is a negative activity.
• C) To show the monthly payment as a positive number.
• D) To subtract the amount of the loan from the total payments.

---

Definitions:

Treasury Bond

A long-term, fixed-interest U.S. government debt security with a maturity of more than ten years.

Yield

Yield is the income return on an investment, expressed as a percentage of the investment’s cost or current market value, commonly used for bonds and dividend-paying stocks.

Zero-Coupon Bonds

Bonds that don’t make periodic interest payments but are issued at a discount to their face value and redeemable for the face amount at maturity.

Expected Interest Rate

The anticipated rate at which interest is to be paid by a borrower for the use of money.