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Annual Coupon
The yearly interest payment made to bondholders, based on the bond's face value.
Yield to Maturity
The total return expected on a bond if it is held until the date it matures.
Maturity Risk Premium
The additional yield that investors demand to compensate for the risk of holding a longer-term debt instrument, over and above the risk of short-term instruments.
Default Risk
The risk that a borrower will not make the required payments on their debt obligations, leading to a default.
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