Examlex
Match the description with its most closely associated term.
-Theory
Compounded Semiannually
Interest calculated twice per year, with the first period's interest being added to the principal before the second period's interest is calculated.
Strip Bond
A financial instrument obtained by separating the coupons from the principal of a bond, which then sells each part as a zero-coupon bond.
Semi-Annually Compounded
Pertaining to the interest calculation method where the interest is compounded and added to the principal amount twice a year.
Compounded Annually
The process of earning interest on both the initial principal and the accumulated interest from previous periods on an annual basis.
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