Examlex
Creditors analyze the statement of cash flows to determine:
Law of One Price
The economic theory that states that the price of an identical asset or commodity will have the same price globally when price differences account for exchange rates.
Yield to Maturity
The total return anticipated on a bond if the bond is held until it matures, incorporating both interest payments received and any gain or loss if the bond is bought at a discount or premium to its face value.
Zero-coupon Bond
A type of bond that does not pay interest during its life but is sold at a discount and matures at its face value.
Maturity
The date on which the principal amount of a loan, bond, or other financial instrument becomes due and payable.
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