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Coupon Rate
The per annum interest rate of a bond, depicted as a percentage of its principal amount.
Zero-Coupon Bond
A financial instrument that pays no regular interest, sold at a significant discount and redeemed for its full face value at maturity.
Duration
A measure of the sensitivity of the price of a bond or other debt instrument to changes in interest rates, often used to estimate the price's volatility.
Coupon Bond
A type of bond that pays the holder a fixed interest rate (coupon) periodically until the maturity date, at which point the principal amount is paid back.
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