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In analyzing the cash flows associated with bond investments, why is it crucial for business students to differentiate between coupon payments and principal repayment? How
In analyzing the cash flows associated with bond investments, why is it crucial for business students to differentiate between coupon payments and principal repayment? How do these two types of cash flows impact the overall return and risk profile of bonds for investors? Additionally, how might fluctuations in interest rates affect the attractiveness of each type of cash flow?
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