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A dichotomous variable, one with just two possible categories, can be incorporated into a regression model via a ___________ or __________ variable x whose possible values 0 and 1 indicate which category is relevant for any particular observations.
Bond Premium Amortization
The gradual expense recognition over time of the premium paid above the par value for a bond.
Interest Expense
The cost incurred by an entity for borrowed funds, reflected as a charge against earnings.
Interest Rate
The Interest Rate is the proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.
Straight-Line Amortization
A method of calculating the depreciation of an asset or the repayment of a loan in equal installments over a specified period of time.
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