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Net explains: “Hokey pokey. I put money in. I want to get back more than I put in. Shocking.
Bonds are streams of cash flows or yields, punctuated by returns of principal along the way. Recall that the face number on the bond certificate is the coupon, also called the nominal yield. If the bond was trading at par or 100 cents on the dollar, life would be simple but bonds usually aren’t so accommodating.
Bonds at a Discount: “Let’s say FB loses 30% of its revenues – maybe tastes just shift ...
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