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The Brain Becomes Sophisticated During the Fetal State, and the Neurons

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The brain becomes sophisticated during the fetal state, and the neurons become coated with an insulating material called myelin that helps speed the transmission of messages from the brain to the rest of the body.


Definitions:

Discount Rate

The interest rate used to discount future cash flows to their present values, often used in investment appraisal and risk assessment.

Duration

The measure of the sensitivity of the price of a bond or other debt instrument to changes in interest rates, often expressed in years.

Coupon Bond

A type of bond that pays the holder interest payments at fixed intervals (usually annually or semi-annually) until the bond matures, at which point the principal amount is repaid.

Interest-Rate Risk

The potential for investment losses that result from a change in interest rates, affecting the value of fixed-income securities inversely.

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