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Bond Indenture
A legal contract outlining the terms and conditions under which a bond is issued, including the interest rate and maturity date.
Face Amount
The nominal value of a financial instrument as stated on the face of the document, not including interest or earnings.
Contract Rate
The agreed-upon rate for financial transactions or payments defined in a contractual agreement.
Effective Interest Method
A method of computing the amortized cost of a bond and the interest expense over its life by applying a constant interest rate.
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