Examlex
What are the functions of money?
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.
Reinvestment Assumption
The assumption in financial planning or analysis that all cash flows or dividends will be reinvested to generate additional returns.
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