Examlex
Explain what is meant by bonding.
Discount Rate
The interest rate used to discount future cash flows of a financial instrument to present value, reflecting the time value of money.
Present Value
The present value is the present-day valuation of a future money sum or cash flow series, determined by a given rate of return.
Simple Interest
A method of calculating the interest charge on a loan or financial product based on the original principal amount and the rate of interest over a specific time period, without compounding.
Interest on Interest
Earnings from reinvesting the interest received from an investment, leading to exponential growth over time.
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