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When Does a Shortage Occur

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When does a shortage occur?


Definitions:

Redeemed

The act of repaying or buying back a security or loan, often before it matures.

Guaranteed Minimum

The lowest amount assured by a contract, regardless of external conditions or outcomes.

Annual Rates

Refers to the interest rate or growth rate over a one-year period, often used in financial contexts.

Strip Bond

A financial instrument resulting from the separation of the coupon payments and the principal of a regular bond, where each part is sold separately as a zero-coupon bond.

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