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The Methodology Component of the Written Report Should Contain All

question 11

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The methodology component of the written report should contain all of the following information except


Definitions:

Premium, Discount, or Par

A classification to describe if a bond is trading above (premium), below (discount), or at its face value (par).

Market Rate

The ongoing market rate at which you can buy or sell an asset or service.

Contract Rate

The interest rate stated in a loan or lease agreement, dictating the rate at which interest accrues on the outstanding principal.

Bond Premium

The excess of a bond's market price over its principal amount or nominal value.

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