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Inflation Premium
The part of the nominal interest rate that represents compensation to the lender for the loss of purchasing power due to inflation.
Fisher Effect
An economic theory stating that the real interest rate is independent of monetary measures, especially the nominal interest rate and the expected inflation rate.
Canada Plus Call
Call provision that compensates bond investors for interest differential, making it unattractive for an issuer to call a bond.
Face Value
The nominal value stated on a financial instrument, such as a bond or stock certificate, representing its official worth.
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