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question 92

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Definitions:

Coupon Bond

A type of bond that pays the holder periodic interest payments based on the stated coupon rate and then returns the principal at maturity.

Market Yield

The annual income return on an investment, expressed as a percentage of the market price.

Face Value

The nominal value printed on a security or financial instrument, such as a bond or stock, at issue.

Convertible Bond

A type of corporate bond that can be converted into a predetermined number of the company's equity shares at certain times during its life, usually at the discretion of the bondholder.

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