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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.
Compounded Annually
The calculation of interest on the initial principal and the interest accumulated over the previous periods once a year.
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Q85: Smart cards are convenient to use because