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Use the figure above to answer the following questions.
-Sphincters
Premium
The amount by which the price of something, especially a financial security, exceeds its principal or face value.
Interest Rates
The cost of borrowing money or the return on investment for savings, usually expressed as a percentage of the principal amount on an annual basis.
Bond Prices
The market price at which a bond is traded, influenced by interest rates, credit ratings, and the bond's term to maturity.
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