_____ Generally Means Failure by the Obligor to Pay on the Instrument

question 25

Multiple Choice

_____ generally means failure by the obligor to pay on the instrument when presentment for payment is made.

• A) Conversion
• B) Dishonor
• C) Bankruptcy
• D) Forgery
• E) Presentment

---

Definitions:

Discount Factor

A multiplier used in discounted cash flow analysis to present value future cash flows.

Discount Rate

In finance, the interest rate used to discount future cash flows to their present value, often reflecting the risk or time value of money.

Opportunity Cost

The cost of missing out on the next best alternative when making a decision.

Present Value

The current value of a future sum of money or stream of cash flows, given a specified rate of return.