Continuous Interest Rates Are an Example of Where the Future

question 59

Short Answer

Continuous interest rates are an example of where the future sum grows _____________.

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Definitions:

Eight Year Note

A debt instrument with a fixed interest rate and a maturity of eight years, at which point the principal sum is repaid to investors.

Yield

Yield is the income returned on an investment, such as the interest or dividends received from holding a particular security, expressed usually as a percentage of the investment's cost.

Buyer

An individual or entity that purchases goods or services from another for a price.

Compounded Semi-annually

A method of calculating interest where the interest is added to the principal amount every six months, affecting subsequent interest calculations.