Examlex
To create a joint tenancy, the tenants must assume title by the same instrument.
Effective Interest Method
A way of amortizing bond premiums or discounts over the bond's life that reflects the constant yield to maturity.
Premium Amortization
The process of gradually writing off the initial premium paid on a bond above its par value over the life of the bond.
Bonds
Bonds are financial instruments representing a loan made by an investor to a borrower, typically corporate or governmental, which pays interest over time and returns the principal at maturity.
Effective Yield
The total yield on an investment, taking into account the compounding of interest, as opposed to just the nominal rate.
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