Rule 28 of 32 in this unit2.1.2
2.1.2 Debt Instruments
SIE outline 2.1.2
The Deflation Floor at Maturity
Repayment is floored at the original principal. Deflation can shrink the payments along the way: never the amount repaid.
The method for this kind of question
- Term + payment form names the instrument.
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