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An important distinction should be made between a firm's core product and its actual product. While the core product may be a CD that contains an antivirus software program, the actual product may have a number of characteristics, include a quality level, features, design, a brand name, and packaging.
Bonds
Financial instruments issued by corporations, governments, or other entities to finance projects or operations, representing a loan from the investor to the issuer that is to be repaid with interest.
Stock
Shares of ownership in a corporation, representing a claim on part of the corporation's assets and earnings.
Present Value
The current worth of a future sum of money or stream of cash flows, given a specified rate of return.
Interest Rate
The portion of a loan incurred as interest by the borrower, generally stated as an annual percentage of the loan yet to be repaid.
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