Examlex
Identify each of the following unbalanced reactions using the following choices:
-Mg + HCl MgCl2 + H2
Forward Interest Rate
A rate that is deduced from current bond yields, representing the expected future interest rate between two periods.
Bond Stripping
Selling bond cash flows (either coupon or principal payments) as stand-alone zero-coupon securities.
Arbitrage
The method of earning profits by exploiting the price variances of an identical asset across diverse markets through concurrent purchase and sale.
Law of One Price
The economic theory that states that the price of an identical asset or commodity will have the same price globally when price differences account for exchange rates.
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