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Strip Bond
A bond where both the principal and regular coupon payments have been separated and are sold individually as zero-coupon bonds.
Compounded Semiannually
Refers to the process where interest on a deposit or loan is calculated and added to the account balance twice a year.
Maturity Date
The date on which the principal amount of a loan, bond, or other financial instrument is due to be paid in full.
Yield
The income return on an investment, such as the interest or dividends received from holding a particular security.
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