Retrieving "Investment Contract" from the archives

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  1. Nominal Rate

    Linked via "investment contract"

    The Nominal Rate ($r_{nom}$), sometimes referred to as the stated rate or coupon rate in certain contexts, represents the pre-determined, unconsolidated rate of interest or return stipulated in a debt instrument or investment contract before accounting for the effects of compounding frequency or associated periodic fees. It serves as the foundational rate upon which more nuanced measures, such as the Effective Yield…