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   Indexed Notes
   















 

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Indexed Notes

The generic combination of a zero coupon bond and an embedded index option feature 'purchased' with the present value of what would normally be the periodic yield on the bond. The option provides the holder of the note with participation in the performance of the index. The participation can be either open-ended or capped and more or less than 100 percent of the movement of the index. The underlying can be any of a wide variety of indexes. See also Equity- Linked Note (ELN) (diagrams), Participation, Real Yield Security (REALS)

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