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An automobile manufacturer voluntarily recalls certain models to fix a defective part at no cost to the owners. This action has the effect of
Call Premium
The extra amount over the bond's face value that investors must pay to call away a bond before its maturity date.
Term Structure
The connection between different terms or maturities and interest rates or bond yields.
Fisher Formula
An equation used to identify the nominal interest rate or the required rate of return on an investment, taking inflation into account to determine the real interest rate.
Coupon
The interest rate on a bond, usually expressed as a percentage of the face value and paid at regular intervals.
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