Question
A loan that requires the borrower to make the same payment every period until the maturity date is called a [A] . A [B] pays
A loan that requires the borrower to make the same payment every period until the maturity date is called a [A]. A [B] pays the owner of the bond a fixed interest payment every period, plus the face value of the bond at the maturity date. A credit market instrument that pays the owner the face value of the security at the maturity date and nothing prior to then is called a [c]. A [D] requires the borrower to repay the principal at the maturity date along with an interest payment. The interest rate that equates the present value of the cash flow received from a debt instrument with its market price today is the [E]. (fill the blanks from the following: simple loan; discount bond; fixed-payment loan; coupon bond ; simple interest rate; yield to maturity; real interest rate; opportunity cost; time value of money)
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