Examlex
Which of the following is correctly matched? (Select all that apply.)
Strip Bond
A debt security that is derived from the coupon and principal payments of a bond, which are separated ("stripped") and sold as individual zero-coupon bonds.
Compounded Semi-Annually
Interest calculated on the principal and previously earned interest twice a year.
Quarterly Compounded
An interest calculation method where interest is added to the principal every quarter, increasing the amount of interest earned or paid.
Nominal Rate
Nominal Rate refers to the interest rate before adjustments for inflation or other factors. It is the rate quoted on loans and savings without taking into account the real purchasing power of the money.
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