Explain the Concept of an Application Service Provider

question 42

Essay

Explain the concept of an application service provider.

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Definitions:

Bond Indenture

A legal contract outlining the terms and conditions between the bond issuer and the bondholders.

Convertible Feature

A characteristic of some bonds or preferred stocks that allows them to be converted into a specified number of common shares, usually at the discretion of the holder.

Floating-rate Bond

A bond whose interest payments vary with market interest rates, as opposed to a fixed-rate bond.

Implicit Interest

The interest amount represented in the difference between the present value and the future value of a payment or investment.