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Community: Investing Wiki

Term Of The Hour

calculate imputed interest: Original post by Ryan Menezes of Demand Media Most bonds offer coupons, or interest rates. When the bond matures, the investor receives interest in addition to the bond's face value. Non-interest bearing notes offer no such coupon, but they do offer returns. This is because investors buy them at a price significantly less than the bond's face value. The note then offers a fixed return rather than…

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