Examlex
Which of the following statements is correct?
Appreciated
Refers to an increase in the value of an asset over time.
Compounded Semiannually
Interest calculated twice per year, with the first period's interest being added to the principal before the second period's interest is calculated.
Strip Bond
A financial instrument obtained by separating the coupons from the principal of a bond, which then sells each part as a zero-coupon bond.
Semi-Annually Compounded
Pertaining to the interest calculation method where the interest is compounded and added to the principal amount twice a year.
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