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According to the empirical rule,if the data form a "bell-shaped" normal distribution,percent of the observations will be contained within 3 standard deviations around the arithmetic mean.
Bond Value
The present worth of a bond's future interest payments and principal repayment, discounted at the market rate of interest.
Face Amount
The nominal or dollar value printed on a financial instrument, such as a bond or insurance policy.
Specified Rate
A predetermined interest rate detailed in a financial agreement or instrument.
Liquidity Risk Premium
An additional return that investors demand for holding securities with low liquidity, compensating for the cost associated with the inability to quickly sell the asset.
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