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Martin looks at his class syllabus and notices that his professor will lecture today on the work of Noam Chomsky. What is most likely to be the focus of the lecture?
Maturity
The final payment date of a loan or financial instrument, at which point the principal (and all remaining interest) is due to be paid.
Interest Rate Risk
The risk that changes in interest rates will adversely affect the value of an investment, particularly relevant for fixed-income securities.
Variable-Rate Assets
Assets that earn interest at rates which adjust over time based on prevailing market conditions.
Cash Equivalent
Short-term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value.
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