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Which of the following structures is smallest?
Coupon Payments
Periodic interest payments made to bondholders, typically expressed as a fixed percentage of the bond's face value.
Effective Yield
Effective yield is the total yield of an investment, taking into account the effect of compounding interest over the period.
NPV Calculation
The process of determining the Net Present Value of a series of cash flows by discounting them to their present value using a specific rate.
Interest Charges
Costs incurred for borrowing money, calculated as a percentage of the principal amount over a given period.
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