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Using Descriptions Below, Identify Each of the Key Terms or Concepts

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Using descriptions below, identify each of the key terms or concepts that were discussed in the chapter entitled "Measuring and Calculating Interest Rates and Financial Asset Prices":
a. Interest on a loan is paid upfront before the borrower has use of the funds.
b. Interest owed by the borrower is figured on the full initial loan balance.
c. Ratio of a financial asset's expected annual income to its market value or price.
d. Includes the present value of all expected cash flows from a financial instrument.

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a. Discount method.
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