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The best medium of exchange combines:
Premium
A premium refers to the amount paid for buying insurance or the amount paid over the face value of bonds.
Contract Rate
The interest rate specified in a contractual agreement, such as in a loan or bond.
Market Rate
The prevailing interest rate available in the marketplace for instruments of similar risk and maturity.
Coupon Bonds
Bonds that pay the holder a fixed interest rate (the coupon) over the bond's life, culminating in the repayment of the principal amount at maturity.
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