The Length of Time Until a Bond Matures Is Called

question 172

Multiple Choice

The length of time until a bond matures is called the

• A)perpetuity.
• B)term.
• C)maturity.
• D)intermediation.

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Definitions:

Present Value

The present value of a sum of money or series of cash flows expected in the future, discounted at a certain rate of return.

Net Present Value

The discrepancy between incoming and outgoing cash flows' current worth over a certain timeframe, utilized in long-term investment planning to evaluate an investment's profit potential.

Future Cash Inflows

The expected receipts of cash in the future from investments, operations, or other sources.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the asset's consumption, wear and tear, or obsolescence.