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Yield to Maturity
The anticipated full income on a bond, provided it is held through to its expiration date.
Interest Rate Risk
The risk of losing money on investments because of changes in interest rates.
Zero Coupon Bond
A debt security that does not pay periodic interest (coupon) payments and is instead issued at a substantial discount to its face value, with the return being the difference between the purchase price and the face value at maturity.
Current Yield
The current yield is a financial metric that calculates the annual income (interest or dividends) an investment generates, divided by its current price.
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