Examlex
Simplify.
Effective EAR
The Effective Annual Rate is the actual return on an investment, taking into account the effect of compounding interest.
Par Value
The nominal or face value of a bond, stock, or coupon as stated by the issuer, which is often used to calculate interest payments.
Annual Coupon Payments
The fixed interest payments made by a bond issuer to the bondholders at regular intervals over the life of the bond.
Positive Slope
In graph terms, a positive slope indicates that as one variable increases, the other variable also increases, demonstrating a direct relationship.
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