Examlex
Which of the following items is not included in the decision to purchase a new capital asset to replace an old one?
Stripped Bond
A debt security where the principal and regular coupon payments have been separated and are sold as individual securities.
Inflation Premium
The part of the nominal interest rate that represents compensation to the lender for the loss of purchasing power due to inflation.
Fisher Effect
An economic theory stating that the real interest rate is independent of monetary measures, especially the nominal interest rate and the expected inflation rate.
Canada Plus Call
Call provision that compensates bond investors for interest differential, making it unattractive for an issuer to call a bond.
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