| annuity | A level stream of cash flows for a fixed period of time.
|
 |
|
|
| annuity due | An annuity for which the cash flows occur at the beginning of the period.
|
|
|
|
| perpetuity | An annuity in which the cash flows continue forever.
|
|
|
|
| consol | A type of perpetuity.
|
|
|
|
| stated interest rate | The interest rate expressed in terms of the interest payment made each period. Also, quoted interest rate.
|
|
|
|
| effective annual rate (EAR) | The interest rate expressed as if it were compounded once per year.
|
|
|
|
| annual percentage rate (APR) | The interest rate charged per period multiplied by the number of periods per year.
|