Fill in the Blanks Related to the Characteristics of a Promissory

question 190

Essay

Fill in the blanks related to the characteristics of a promissory note.
1.The party promising to pay the note is called the ________.
2.The amount for which the note is written is called the _______ amount.
3.The date the note is to be paid is the _______ date.
4.The time between the date when a note is written and the time it must be paid is called the _____ of the note.

---

Definitions:

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, often used in financial analyses to find an average value wherein each data point can carry a different weight.

Convexity

A measure of the curvature in the relationship between bond prices and yield, indicating how the duration of a bond changes as interest rates change.

Duration Predictions

Predictions about the length of time it will take for the price of a bond to be repaid by its internal cash flows.

Yield Falls

A situation where the yields on bonds decrease, which typically occurs when bond prices increase.