Finance, or financial management, requires the knowledge and precise use of the language of the field. Match the terms relating to the basic terminology and concepts of the time value of money on the left with the descriptions of the terms on the right. Read each description carefully and type the letter of the description in the Answer column next to the correct term. These are not necessarily complete definitions, but there is only one possible answer for each term. Answer Term Discounting A Time value of money B Amortized loan C Ordinary annuity D. Annual percentage rate E Description A rate that represents the return on an Investor's best available alternative investment of equal risk. A cash flow stream that is generated by a share of preferred stock that is expected to pay dividends every quarter indefinitely A concept that maintains that the owner of a cash flow will value it differently, depending on when it occurs. An interest rate that reflects the return required by a tender and paid by a borrower, expressed as a percentage of the principal borrowed. A process that involves calculating the current value of a future cash now or series of cash flows based on a certain interest rate. A cash flow stream that is created by an investment or loan that requires its cash flows to take place on the last day of each quarter and requires that it tast for 10 years, A cash flow stream that is created by a lease that requires the payment to be paid on the first of each month and a lease period of three years. The name given to the amount to which a cash now, or a series of cash flows, will grow a over a given period of time when compounded at a given rate of interest. A type of security that is frequently used in mortgages and requires that the loan payment contain both interest and loan principal. A table that reports the results of the disaggregation of each payment on an amortized loan, such as a mortgage, into its interest and loan repayment components Annuity due F. Perpetuity G Future value H Amortization schedule 1. Opportunity cost of funds 1