FIN 370 Course Great Wisdom / tutorialrank.com FIN 370 Course Great Wisdom / tutorialrank.com | Page 5

the float costs for financing the project
What ’ s the current yield of a 6 percent coupon corporate bond quoted at a price of 101.70 ?
6.1 percent
10.2 percent
6.0 percent
5.9 percent
We call the process of earning interest on both the original deposit and on the earlier interest payments :
computing .
multiplying .
compounding .
discounting .