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Why is it important to understand the other's perspective in negotiation?
Interest Rates
The price of borrowing money, expressed as a percentage of the amount borrowed, set by lenders as compensation for the risk and the opportunity cost of lending.
Floating-rate Bonds
Bonds with a variable interest rate that adjusts periodically in accordance with a benchmark interest rate or index.
Convertible Bonds
Bonds that can be converted into a predetermined number of shares of the issuing company's stock at certain times during the bond's life, usually at the discretion of the bondholder.
Interest Rate Risk
The potential for investment losses due to fluctuations in interest rates, which can affect the value of interest-bearing assets like bonds.
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