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Bonds
Long-term debt securities issued by corporations and governments to raise funds, paying interest to holders.
Effective-Interest Method
An accounting practice used to amortize the discount or premium on bonds payable over the bond’s life, reflecting a constant rate of interest.
Bonds
Long-term debt securities issued by corporations or governments, promising to pay the holder a specified amount of interest over a set period of time before returning the principal amount.
Amortization
The process of gradually writing off the initial cost of an intangible asset over a period of time, reflecting its consumption, expiration, or obsolescence.
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