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What is the basic equation underlying the income statement? What does the income statement tell users?
Bond
An interest-bearing note payable usually in $1,000 denominations issued by a corporation to a large group of lenders.
Annual Interest Rate
The percentage of interest that will be charged or earned on a principal amount over the course of a year.
Face Value
The nominal value or dollar value printed on a security or a financial instrument, such as a bond or a stock certificate.
Market Rate
The prevailing interest rate available in the marketplace for instruments of similar risk and maturity.
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