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Joens1313
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What is the risk premium?
The risk premium generally is considered to be the sum of the default risk premium and the maturity risk premium.

What is an annuity?
 An annuity is a series of payments of a fixed
 amount for a specified number of years.

What is an ordinary annuity?
 The payment occurs at the end of the year (in
 arrears)

What is an annuity due?
 The payment is made at the beginning of the
 year.

In terms of an annuity, what does perpetuity
mean?
 A perpetuity is a special instance of annuity in
 which a annuity continues infinitely.

Bonds represent the right to receive any
 specified in the bond and the return of
principal upon maturity.
 Bonds represent the right to receive any
 interest payments specified in the bond and the return of principal upon
 maturity.

 represent the right to receive
any interest payments specified in the bond and the return of principal upon
maturity.
 Bonds represent the right to receive any
 interest payments specified in the bond and the return of principal upon
 maturity.

What is the bonds stated face value called?
Par value

The bonds stated par value is to be repaid at a
specified future date, called a maturity date.
The bonds stated par value is to be repaid at a specified future date, called a 

What is the bonds coupon interest rate?
 The rate the issuer uses to calculate the
 interest payments of a bond.

The coupon interest rate, or stated interest
rate, is the rate the issuer uses to calculate the interest payments for a
bond.
 The , or stated interest
 rate, is the rate the issuer uses to calculate the interest payments for a
 bond.

