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What Is Risk Analysis,and How Might an Evaluator Perform a Risk

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What is risk analysis,and how might an evaluator perform a risk analysis?


Definitions:

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return, used in discounting and investment appraisal.

Bond Discount Account

An accounting term representing the difference between the face value of a bond and its selling price when sold at less than its face value.

Serial Bonds

Bonds that mature at different intervals over a period of time, allowing the issuer to retire a portion of the bond issue at regular intervals.

Present Value

The immediate value of a future stream of income or lump sums of money, assessed with a specific interest rate in mind.

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