Present ValueThe present sum which, if compounded at a given rate of interest per period over a given number of periods, will yield a stated future value.

Price-to-callThe current price of a callable bond on the assumption that the bond is called at some price other than par and at a date prior to the maturity date.

PrincipalA sum on which interest accrues; capital. as distinguished from income.

R

Rate(See Percent)

RebateAn allowance; a deduction; a refund of a part of the price paid for a good or service.

Remaining PrincipalThe outstanding balance of a loan (not including interest) remaining unpaid by the borrower, usually after a specified point within the life of the loan.

Rule of 78’sA method of amortizing a consumer finance charge using the sum-of-the-months’ digits technique generally used for computing interest rebates (amount of unearned finance charge); (See Sum-of-the-Digits Amortization)

S

Settlement DateThe date on which payment (usually for a security) is settled.

Simple InterestThe charge for the loan of money or for a deferment of the collection of an account, computed by applying a rate (of interest) against the amount of the loan or account. Contrasts with compound interest in that only the principal earns interest for the entire life of the transaction.

Sinking FundCash or other assets, and the interest or other income earned thereon, set apart for the retirement of a debt; the redemption of stock; or protection of an investment in depreciable property.

Standard DeviationA measure of dispersion around the mean.

Sum-of-the-Digits AmortizationA method of amortizing, whereby the amount reduced each period is obtained by multiplying the total amount to be amortized by a fraction whose numerator is the digit representing the remaining number of amortization periods, and whose denominator is the sum of the digits representing the number of periods of amortization.

Sum-of-the-Digits DepreciationDepreciation method utilizing Sum-of-the-digits amortization technique.