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Zero Coupon Bond
A type of bond that does not pay interest during its life but is sold at a deep discount, paying its full face value at maturity.
Tax Rate
The percentage at which an individual or corporation is taxed by the government, varying across income or profit levels.
Cost of Capital
The rate of return that a company must earn on its projects to maintain its market value and attract funds.
Market Risk Premium
The supplementary income an investor aims to gain by investing in a market portfolio with risk rather than in secure, risk-free assets.
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