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Interest Rates
The cost of borrowing money or the rate paid for the privilege of using someone else's money, usually expressed as a percentage.
Inverted Yield Curve
An inverted yield curve occurs when long-term debt instruments have a lower yield than short-term debt instruments, often considered a forewarning of economic recession.
Convertible Bonds
Bonds issued by a corporation that can be converted into a predetermined number of the company's shares at certain times during the bond's life, usually at the discretion of the bondholder.
Bond Yields
The return an investor realizes on a bond, calculated as the annual interest payment divided by the bond's current market price.
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