Examlex
The ________ is used to determine the annual or semi-annual interest cash flow for a bond whereas the ________ is the rate used to determine the price of the bond.
Discount Rate
The interest rate that the Federal Reserve charges commercial banks for loans, or a rate used in discounted cash flow analysis to determine the present value of future cash flows.
Compounded Semi-annually
Interest calculation method where the interest is added to the principal twice a year, leading to a growth in the amount at a faster rate than simple interest.
Compounded Quarterly
This term refers to the calculation and addition of interest to the principal sum of a deposit or loan on a quarterly basis.
RRSP
A Canadian retirement savings plan that defers taxes on contributions and investment earnings until withdrawal.
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