Examlex
The payback method and accounting rate of return methods consider the effect of the time value of money.
Coupon Bond
A type of bond that pays the holder a fixed interest payment (coupon) at regular intervals until the maturity date, when the principal amount is repaid.
Maturity
The expiration date of a financial instrument, at which point the principal (and all remaining interest) is due to be paid.
Coupon Rate
The annual interest rate paid by bond issuers on the bond's face value.
Duration
A financial metric that indicates the sensitivity of a bond's price to changes in interest rates, commonly measured in years.
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