Examlex
Use the following data to answer the questions.
Present Value
The present valuation of a future financial sum or cash flow series, factoring in a specific return rate.
Compound Interest
Interest earned on both the initial principal and the accumulated interest from previous periods on a deposit or loan.
Bond
A financial instrument in which an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period at a specified interest rate.
Semiannual Interest
Interest that is calculated and paid twice a year, typically used in the context of bonds and loans.
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