Final answer:
A bond's value, maturity rate, and rate of return can be calculated using the same compounding and discounting methods as in earning and purchasing power.
Step-by-step explanation:
In financial terms, a bond can be calculated using the same compounding and discounting methods as in earning and purchasing power. The value of a bond is determined by its face value, coupon rate, maturity date, and market interest rates. The present value of a bond can be calculated by combining these factors, allowing a buyer to determine how much they would be willing to pay for the bond.
For example, if a bond has a face value of $1,000, a coupon rate of 5%, and a maturity date of 5 years, the buyer can calculate the present value of the bond based on the prevailing market interest rates. This calculation would help the buyer determine the maximum price they would be willing to pay for the bond.
Therefore, the terms/values that can be calculated using the same compounding and discounting methods as in earning and purchasing power include bond value, maturity rate, and rate of return.