Term Answer Description Discounting Time value of money Amortized loan G Ordinary annuity D Annual percentage rate Annuity due G A. A 6% return that you could have earned if you had made a particular investment B. A cash flow stream that is generated by a share of preferred stock that is expected to pay dividends every quarter indefinitely C. The concept that states that the timing of the receipt or payment of a cash flow will affect its value to the holder of the cash flow D. A value that represents the interest paid by borrowers or earned by lenders, expressed as a percentage of the amount borrowed or invested over a 12-month period E. A process that involves calculating the current value of a future cash flow or series of cash flows based on a certain interest rate F. A cash flow stream that is created by an investment or loan that requires its cash flows to take place on the last day of each quarter and requires that it last for 10 years G. A series of equal cash flows that occur at the beginning of each of the equally spaced intervals (such as daily, monthly, quarterly, and so on) H. The name given to the amount to which a cash flow, or a series of cash flows, will grow over a given period of time when compounded at a given rate of interest I. A type of security that is frequently used in mortgages and requires that the loan payment contain both interest and loan principal J. A table that reports the results of the disaggregation of each payment on an amortized loan, such as a mortgage, into its interest and loan repayment components Perpetuity B Future value H Amortization schedule Opportunity cost of funds A