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The reality principle states that
Noncallable Bonds
Bonds that cannot be redeemed by the issuer before their specified maturity date, offering protection to bond investors.
Par Value
The face value of a bond or stock, as stated by the issuing company, which may differ from the market value.
Annual Coupon
The yearly interest amount paid to bondholders, typically expressed as a percentage of the bond's face value.
Default Risk Premium
The additional yield a lender demands to compensate for the risk that the borrower may default on the loan.
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