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Strip Bond
A bond where both the principal and regular interest payments have been removed, typically sold at a discount and pays no interest until maturity.
Yield Rate
The income return on an investment, such as the interest or dividends received, expressed annually as a percentage based on the investment's cost, current market value, or face value.
Strip Bond
A debt security that has had its principal and coupon payments detached and sold separately.
Compounded Semi-annually
Interest calculated on the initial principal and the interest that has been added on a bi-annual basis.
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