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Interest Rate
The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan amount.
Effective-Interest Method
A method of calculating the amortized cost of a bond and the interest expense over its life, reflecting the actual market rate.
Bond Interest Expense
The cost associated with borrowing through bond issues, representing the periodic payments made to bondholders during the life of the bond.
Amortization of Bond Premium
The gradual expense recognition of the premium paid over par value for a bond over its life, reducing the bond investment value.
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