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Which approach is desirable when there is a high degree of supply risk or early supplier involvement is required?
Face Value
The nominal or dollar value printed on a financial instrument, such as a bond or stock certificate.
Required Return
The minimum profit or yield that investors expect or require from an investment.
Interest
The cost of borrowing money or the income earned from lending money, usually expressed as a percentage of the principal.
Coupon Rate
Yearly interest earnings from a bond, shown as a percentage of its face value.
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