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Describe the two methods of organizing a secondary market.
Yearly Payment
An amount of money that is paid once every year, often related to loans, leases, or other financial agreements.
Interest Rate
The amount charged by lenders to borrowers for the use of assets, expressed as a percentage of the principal.
Coupon Bond
A bond that entitles the holder to receive periodic interest payments (coupons) and the principal back at maturity.
Effective Yield
Effective yield is the total yield on an investment, taking into account the effects of compounding interest or reinvestment over a given period.
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