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What is the point of Mencius's story about Ox Mountain?
Annual Coupon
The fixed interest payment a bondholder receives from the bond's issuer each year.
Perpetual Debt
Debt instruments with no maturity date, allowing issuers to pay interest indefinitely without repaying the principal.
Coupon Rate
The yearly interest rate paid on a bond, shown as a percentage of its nominal value.
Interest Tax Shield
The reduction in income taxes that results from taking allowable deductions for interest expense.
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