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Diverse Communities

question 13

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Diverse communities


Definitions:

Callable Bonds

Securities that the issuer has the right to repurchase before they reach their due date, for a predefined amount.

Market Rate

The prevailing rate of interest available in the marketplace for securities of similar risk and maturity.

Face Value

The nominal value printed on a financial instrument like a bond or stock certificate, not necessarily its current market value.

Effective Interest Rate

The actual cost of borrowing or the actual yield on savings, taking into account the compounding of interest over time.

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