Examlex
The text mentions two important questions to ask about a popular press story.What are these two questions and why are they important to consider as you evaluate a story?
Yield To Maturity
The total return anticipated on a bond if the bond is held until its maturity date, considering all interest payments and the principal repayment.
Modified Duration
A measure of the sensitivity of a bond's price to changes in interest rates, reflecting the change in the bond’s price for a 1% change in yield.
Annual Interest
The percentage of interest that will be charged or earned on an investment or loan, calculated on an annual basis.
Coupon Rate
The annual interest rate paid by the issuer of a bond to the bondholder, usually expressed as a percentage of the bond's face value.
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