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Which one of the following compounds is consistent with the following IR spectrum? SDBS: National Institute of Advanced Industrial Science and Technology
Zero Coupon Bond
A type of bond that does not pay interest during its life but is sold at a deep discount from its face value.
Reinvestment Rate Risk
The risk that cash flows from an investment will be reinvested at a lower interest rate than the original investment rate, affecting future returns.
Coupon Bond
A type of bond that pays the holder a fixed interest payment (coupon) at regular intervals until the maturity date, at which point the principal is repaid.
Maturity
The date on which a debt must be paid back in full or the final payment is due.
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