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Differentiate between individualism and collectivism.
High-Coupon Bonds
Bonds that offer a higher-than-average interest rate (coupon) compared to others in the market, reflecting potentially higher risk.
Low-Coupon Bonds
Low-Coupon Bonds are bonds that have a lower interest rate than the prevailing market interest rate, typically making them sell at a discount to their face value.
Yield To Maturity
The total return anticipated on a bond if the bond is held until the end of its lifetime.
Annual Coupon
Annual Coupon refers to the yearly interest payment made by a bond issuer to its bondholders, based on the bond's face value.
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