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STRIPPED Cash Flows
Cash flows that are separated or "stripped" from an asset for investment or valuation purposes, often for the construction of zero-coupon bonds.
Arbitrage
The practice of taking advantage of price differences in different markets by buying low in one and selling high in another.
Yield Curve
A graph showing the relationship between the yields of various debt securities of the same credit quality but different maturities.
Expectations Hypothesis
A theory in finance that explains the structure of interest rates by suggesting that the long-term rate can be determined by current and future expected short-term interest rates.
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