Question: Match the terms with the appropriate explanations Premium bond 2 Inflation 3 Fisher Effect 4 Interest rate risk Yield-to-maturity 7 Semi-annual payments of $20 Discount

 Match the terms with the appropriate explanations Premium bond 2 Inflation
3 Fisher Effect 4 Interest rate risk Yield-to-maturity 7 Semi-annual payments of

Match the terms with the appropriate explanations Premium bond 2 Inflation 3 Fisher Effect 4 Interest rate risk Yield-to-maturity 7 Semi-annual payments of $20 Discount bond Match each of the options above to the items below. Nominal real + Inflation, and in theory we add [ + ] Coupon rate of 4% 7 required rate of return price is greater than par value Nominal real. Intation and in theory we add to Coupon rate of 4 required rate of return price is greater than par value loss of purchasing power Coupon rotes current yield yield-to-matury Risk that interest rates will rise resulting lower price

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