# Corporate Finance

9 Questions | Total Attempts: 248

Settings

Ternmology in corporate finance

Related Topics
• 1.
What is the principal amount of a bond that is repaid at the end of the loan term called?
• A.

Face Value

• B.

Coupon

• C.

Accrued price

• D.

Dirty Price

• E.

Market Price

• 2.
The value of an investment after one or more times periods is called the
• A.

Present value

• B.

Discount rate

• C.

Future value

• D.

Compounding

• 3.
Compound interest is defined as the interest earned
• A.

Only on the initial investment

• B.

On both the initial principal and all interest earned and reinvested in prior periods

• C.

Timing of the annuity payments

• 4.
By definition a bank that pays simple interest on a savings account will pay interest
• A.

Only on the initial investment

• B.

Only at the beginning of the investment period

• 5.
The process of adding the interest earned on an investment to the original investment to the original investment in order to earn more interest is call
• A.

Discounting

• B.

Compounding

• C.

Future value

• 6.
• A.

FV =PV/(1+r)t

• B.

Fv=PV x(1+r)t

• C.

PV=FV/(1+r)t

• 7.
The current value of futyre cash flows discounted at the appropriate discount rate is call
• A.

Future value

• B.

Present value

• C.

Discount rate

• 8.
The interest rate used to compute the present value of a future cash flow is called
• A.

Discount rate

• B.

Future value

• C.

Present value

• D.

Discounting

• 9.
Which one of the following is the correct formula for computing the present value of a lump sum to be received sometime in the future
• A.

Fv=pv/(1+r)t

• B.

Pv=fv/(1+r)t