Examlex
Explain why deflation can be so troubling to borrowers and lenders.
Coupon Rate
The interest rate stated on a bond or other fixed-income security, expressed as a percentage of its face value, that the issuer pays to the bondholder annually.
Interest Rate Risk
The potential loss in value of an investment due to a change in interest rates.
Junk Bonds
Junk bonds are high-yield bonds that carry a higher risk of default compared to investment-grade bonds, offering higher interest rates to compensate for the increased risk.
Interest Rate Risk
The potential for investment losses due to fluctuations in the interest rates, affecting the value of interest-bearing assets like bonds.
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