Short/Long Term Debt Flashcards
1
Q
Annual Financing Costs
A
(discount percent / 100 - disc %) * ( 365 or 360 / total period - discount period)
2
Q
Cost of Loan
A
Interest Paid / Net funds borrowed (Principal - Compensating balance)
3
Q
Current Yield
A
Annual Int Paid / Bond Market Price
4
Q
Effective Annual Interest
A
(1+r/m)^m-1
r = stated int rate, m = compounding frequency
