Match Each Definition That Follows with the Term (A-E) It

question 74

Multiple Choice

Match each definition that follows with the term (a-e) it defines.
-Often referred to as the discounted cash flow method

• A)Capital investment analysis
• B)Time value of money concept
• C)Net present value method
• D)Average rate of return
• E)Cash payback period

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Definitions:

Par Value

The face value of a bond or stock as stated by the issuing company, which may differ from its market value.

Bond Ratings

Assessments made by credit rating agencies on the creditworthiness of corporate or governmental bonds, impacting the interest rates offered.

Amortized Debt

A debt in which the principal is repaid over the life of the loan rather than in a lump sum at the end.

Market Interest Rates

The prevailing rates at which borrowers can obtain loans and investors can receive returns in the financial market.