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Current research and theory in thinking and problem solving
Lenders
Individuals or institutions that provide funds to borrowers under the agreement that the funds will be repaid with interest.
Interest Rate Model
A mathematical model used to forecast future interest rates or to price financial derivatives and manage interest rate risk.
Default Risk Premium
The additional amount a borrower must pay to compensate the lender for assuming the risk of default.
Pure Interest Rate
The earning power of money. An interest rate without an inflation component or premiums for risk.
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