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Black markets only exist in developing nations.
Real Rate
The interest rate adjusted for inflation, reflecting the true cost of borrowing.
Inflation Rate
The rate that reflects how the overall prices of services and goods escalate, causing a reduction in the capacity to purchase.
Treasury Bill
A short-term government security with a maturity of less than one year, sold at a discount to face value to provide a return to the holder upon maturity.
Coupon Bonds
Debt securities that pay periodic interest payments based on a fixed interest rate (coupon) until maturity, at which point the principal is repaid.
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