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While hiking in Central Florida,you are lucky enough to see many swallowtail tiger butterflies.You observe that there are two types,or morphs,of the butterflies - a yellow morph and a black morph.What is a likely explanation for this?
Zero-Coupon Bond
A type of debt security that does not pay interest (coupon) but is traded at a deep discount, rendering profit at maturity when the bond is redeemed for its full face value.
Yield To Maturity
The total return anticipated on a bond if it is held until it matures, including all interest payments and the repayment of principal.
Par Value
The nominal or face value of a bond, share of stock, or other financial instrument, as stated by the issuer.
Coupon Interest Rate
The annual interest rate paid on a bond's face value by the bond's issuer, representing the interest income received by bondholders.
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