In Calculating the Present Value of an Annuity, It Is

question 84

Multiple Choice

In calculating the present value of an annuity, it is required to know the

• A) discount rate.
• B) number of payments.
• C) amount of each payment.
• D) all of the above

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Definitions:

June Contract

A June contract refers to a futures contract or an options contract that expires in the month of June.

Marking To Market

This refers to the daily adjustment of accounts to reflect profits and losses in the value of securities.

Option Contract

A financial contract that gives the buyer the right, but not the obligation, to buy or sell an asset at a specified price on or before a specified date.

Derivative Security

A financial instrument whose value is based on the value of another asset.