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Interest Payments
Regular payments made to lenders or bondholders as compensation for the use of borrowed funds, usually calculated as a percentage of the principal.
Nominal Rate
The stated interest rate of a financial product, not adjusted for inflation, which represents the rate before taking into account the compounding period.
Simple Interest
Interest calculated solely on the principal amount of a loan or deposit, over a particular time period.
Effective Annual Rates
The real return on an investment, taking into account the effect of compounding interest over multiple periods within a year.
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