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What is the mental model theory?
Discounted Note
Refers to a promissory note issued at a price lower than its principal value, to be redeemed at face value at maturity.
Maturity Date
The specified date on which the principal amount of a bond, loan, or other financial instrument is due to be paid in full.
Maturity Value
The amount payable to the investor at the end of a debt instrument's life, including principal and any remaining interest.
Interest
The cost of using borrowed money or the return on invested funds, typically expressed as an annual percentage of the principal.
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