Chapter 6 Cashflows Flashcards
1
Q
An annuity for which the cash flows occur at the beginning of the period
A
Annuity due
2
Q
An annuity in which the cash flows continue forever.
A
Perpetuity
3
Q
A type of perpetuity
A
Consol
4
Q
The interest rate expressed in terms of the interest payment made each period. Also known as the quoted interest rate.
A
Stated interest rate
5
Q
The interest rate expressed as if it were compounded once per year
A
Effective annual rate
6
Q
Interest rate charged per period multiplied by the number of periods per year.
A
Annual percentage rate
7
Q
A level stream of cash flows for a fixed period of time.
A
Annuity
