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Break-Even Interest Rate
The interest rate at which an investment generates returns that are sufficient to cover the costs associated with the investment, resulting in a net profit of zero.
Zero-Coupon Bond
A bond that does not pay interest during its life but is sold at a discount and pays its full face value at maturity.
Forward Rate
An interest rate applicable to a financial transaction that will take place in the future.
Yield To Maturity
The total return anticipated on a bond if held until it matures, considering all interest payments and the capital gain or loss.
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