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If the interest rate is 5%,what is the present value of a security that pays you $1,050 next year and $1,102.50 two years from now? If this security sold for $2,200,is the yield to maturity greater or less than 5%? Why?
Normal Balance
The side (debit or credit) on which increases are recorded in an accounting ledger; varies depending on the account type (asset, liability, equity, revenue, or expense).
Post Reference Column
A column in journal and ledger accounts that helps in cross-referencing entries between these two accounting records.
General Journal
A comprehensive record of financial transactions over the life of a company, listed in chronological order.
Assets
Resources owned by a company or individual that have economic value and can provide future benefits.
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