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Why is investment demand more unstable than personal consumption?
Compounded Semi-annually
This refers to the process of applying interest to an initial sum plus any previously earned interest, and this action occurs twice a year.
Compounded Quarterly
Refers to the process of calculating and adding interest to the principal balance four times a year.
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.
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