crossword v 2

Edit Answers
12345678910111213141516
Across
  1. 1. Payment A fixed number of dollars of interest
  2. 4. Annual Rate (EAR) This is the annual (interest once a year) rate that produces the same final result as compounding at the periodic rate for M times per year. The annual rate of interest that accounts for the effect of compounding.
  3. 6. a monthly, quarterly, or annual basis
  4. 7. Bonds Issued by states and local governments
  5. 8. Value The stated face value of the bond. The amount of money the firm borrows and promises to repay on
  6. 10. bonds Issued by federal government
  7. 13. Schedule Each amortized payment will consist of two parts—part interest and part repayment of principal.
  8. 15. Bonds Issued by businesses
  9. 16. Bonds Issued by foreign governments and foreign corporations
Down
  1. 2. Periodic rate IPER = INOM/M, M - # compounding periods per year
  2. 3. Rate (IPER) The rate charged by a lender or paid by a borrower each
  3. 5. Bonds Bond's coupon payment will vary over time. Example: adjusted every 6 months depending on the market interest rate
  4. 9. Annuity A series of payments that grow at a constant rate.
  5. 11. year
  6. 12. Loan A loan that is to be repaid in equal amounts
  7. 14. maturity date; principal