Examlex
How are wealth and income linked?
Liability
An obligation of an entity arising from past transactions or events, the settlement of which may result in the transfer or use of assets, provision of services, or other yielding of economic benefits in the future.
Par Value
The face value of a bond or stock as stated by the issuing company.
Semiannual
Occurring twice a year or every six months.
Effective Interest Method
An accounting method for calculating the interest income or expense on a bond or loan to reflect the actual economic rate over the financial instrument's expected life.
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