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In order to be accepted by their peers, children must:
Real Rate of Return
The annual percentage profit earned on an investment, adjusted for changes in the price level due to inflation or deflation.
Coupon Rate
The annual interest rate paid by a bond issuer to its bondholders, usually expressed as a percentage of the bond's face value.
Equivalent Annual Payment Bond
A type of bond that pays annual interest payments, calculated to provide a return equivalent to other periodic payment schedules.
EAR
Effective Annual Rate, a measure of interest that takes into account the effects of compounding over a year.
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