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Use the following to answer questions :
-(Figure: Wine and Wheat) Look at the figure Wine and Wheat. The opportunity cost of moving from producing ONLY wheat to producing at point D is _____ tons of wheat.
Nominal Interest Rates
Interest rates that have not been adjusted for inflation, reflecting the rate of interest paid by borrowers or earned by investors.
Pure Discount Securities
Financial instruments that are sold at a discount from their face value and pay no interest until maturity, such as zero-coupon bonds.
Clean Price
The price of a bond excluding any interest that has accrued since issue or during the last coupon payment.
Dirty Price
The price of a bond that includes accrued interest, in contrast to the clean price which excludes it.
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