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Effective Interest Method
A technique used in accounting to allocate the discount or premium on bonds payable over their life to interest expense, reflecting a constant rate of interest.
Semiannual
Happening every six months or twice annually.
Par Value
The nominal or face value of a bond, share of stock, or another security, as stated by the issuer.
Interest Expense
The cost incurred by an entity for borrowed funds, represented as interest payments on debt.
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