| Basis point | One one-hundredth of a percentage point.
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| Bond | A financial instrument that promises a series of future payments on specific dates. Also known as a fixedincome security.
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| Compound interest | The interest you get on interest as it accumulates over time.
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| Coupon bond | A bond offering annual coupon payments at regular intervals until the maturity date, at which time the principal is repaid.
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| Fixed-payment loan | A type of loan that requires a fixed number of equal payments at regular intervals; home mortgages and car loans are examples.
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| Future value | The value on some future date of an investment made today.
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| Internal rate of return | The interest rate that equates the present value of an investment with its cost.
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| maturity date | The time to the expiration of a debt instrument; the time until a bond's last promised payment is made.
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| par value | The final payment made to the holder of a bond; also known as the par value and the face value.
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| present discounted value | The value today (in the present) of a payment that is promised to be made in the future.
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| present value | The value today (in the present) of a payment that is promised to be made in the future.
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| Real interest rate | The interest rate measured in terms of constant (real) dollars; the nominal interest rate minus expected inflation.
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| Rule of 72 | The rule that allows you to find out how many years it will take for the value of an investment to double; divide 72 by the annual interest rate.
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