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Gain or Loss
A financial result that occurs when the selling price of an asset differs from its initial purchase cost.
Callable Bonds
Securities that the issuer has the option to repurchase before they reach their due date, for a predetermined amount.
Debentures
Debentures are a type of long-term debt instrument that are not secured by physical assets or collateral but backed only by the general creditworthiness and reputation of the issuer.
Effective Interest Method
A method of amortizing the discount or premium on bonds payable that results in a constant rate of interest over the life of the bond.
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