Examlex
When bonds are sold between interest dates, the issuer will pay the bondholder a lower amount of interest than the annual interest payment due on the next interest date.
Basic Interest Rate
The fundamental rate charged on loans or earned on deposits, before any adjustments for additional factors or fees.
Discounted Value
The present value of a future amount of money or stream of cash flows after being discounted by a specific rate.
Present Value
The contemporary evaluation of a future financial sum or cash inflow patterns, using a defined rate of return.
Simple Interest
Simple interest is a method of calculating the interest charge on a loan or investment based on the original principal amount and the rate of interest without compounding.
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