The term 'Grandfather Paul' is a compound, proper noun, a Word for a specific person.
The noun 'grandfather' is a compound noun on its own, a combination of the adjective 'grand' and the noun 'father', combined to form a Word with its own meaning.
A proper noun is the name of a specific person, place, or thing. The noun 'Paul' is a proper noun as the name of a specific person. The common noun 'grandfather' is a proper noun as a name you call a specific person.
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