Discount

To obtain the right to delay payments (correct)

To settle the debt immediately

To reduce the original amount owed

To increase the amount owed in the present

Discount rate

Charge (correct)

Interest rate

Discount yield

The proportional share of the initial amount owed that must be paid to delay payment for 1 year (correct)

The interest rate charged for delayed payment

The charge to settle the debt immediately

The total amount owed in the present

<p>Because of mortality effects, impatience effects, and salience effects</p> Signup and view all the answers

<p>Discount yield</p> Signup and view all the answers