A loan in which the borrower promises to repay the borrowed amount plus a predetermined rate of interest is called a(n) ________.
举一反三
- Loans that the borrower to pay interest each period and to repay the entire principal (the original loan amount) at some point in the future are called ____________.
- (I) A discount bond requires the borrower to repay the principal at the maturity date plus an interest payment. (II) A coupon bond pays the lender a fixed interest payment every year until the maturity date, when a specified final amount (face or par value) is repaid.
- When the lender provides the borrower with an amount of funds that must be repaid to the lender at the maturity date, along with an additional payment for the interest, it is called a ______
- For a simple loan, the simple interest rate equals the _________
- In which of the following situations would you prefer to be making a loan? A: The interest rate is 9 percent and the expected inflation rate is 7 percent. B: The interest rate is 4 percent and the expected inflation rate is 1 percent. C: The interest rate is 13 percent and the expected inflation rate is 15 percent. D: The interest rate is 25 percent and the expected inflation rate is 50 percent.