Examlex
How is stress best defined?
Zero-Coupon Bond
A type of bond that does not pay interest during its life but is sold at a substantial discount from its face value and pays its full face value at maturity.
Interest Rate Risk
The potential for investment losses that result from a change in interest rates.
Deep Discount
A significant reduction in price offered on a product or service, often to clear inventory or attract buyers.
Coupon Bond
A debt security that pays the holder a fixed interest rate (coupon) over a specified period until its maturity.
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