Test Preparation on Math Test Preparation Problems on Interest Part 1
1.
A loan that requires the borrower to make the same payment every period until the maturity date is called a
2.
A coupon bond pays the owner of the bond
3.
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
4.
(I) A simple loan requires the borrower to repay the principal at the maturity date along with an interest payment. (II) A discount bond is bought at a price below its face value, and the face value is repaid at the maturity date.
