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Zero-Coupon Bonds
Bonds that are issued at a discount to their face value and do not pay periodic interest, but rather pay the face value at maturity.
Yield
The income return on an investment, such as the interest or dividends received, typically expressed as an annual percentage rate based on the investment's cost, its current market value, or its face value.
Face Value
The nominal or dollar value stated on a security or financial instrument, such as a bond or stock.
Real Rate
The interest rate adjusted for inflation, reflecting the true cost of borrowing.
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