Examlex
Which of the following is correct?
Long-Term Bonds
Bonds with a longer maturity period, typically more than 10 years, offering potentially higher yields but increased interest rate risk.
Treasury Bill
A short-term government security issued at a discount from the face value and pays no interest before maturing at its face value.
Effective Annual Rate
The interest rate on a loan or investment, adjusted for the effect of compounding over a one-year period.
Par
The face value of a bond or other financial instrument, which is the amount to be paid to the holder at maturity.
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