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The wider the separation in the split spectrum lines,the
Real Interest Rates
The interest rate adjusted for inflation, reflecting the real cost of borrowing and the true return on savings.
Tax-exempt Interest Payments
Interest income that is not subject to federal income tax.
Riskier Loans
Loans that have a higher chance of default, often associated with higher interest rates to compensate for the increased risk.
Pure Rate
In finance, often refers to the interest rate or yield on a security that is devoid of any risk, representing the cost of borrowing without the influence of risk factors.
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