Examlex
The method used to pay interest depends on whether the bonds are:
Straight-Line Depreciation
A method of calculating the depreciation of an asset which spreads the cost evenly across the useful life of the asset.
Average Rate of Return on Investment
An investment's return expressed as an annualized percentage, calculating how much an investment has gained compared to its initial cost.
Compound Interest
The interest calculated on the initial principal, which also includes all of the accumulated interest of previous periods of a deposit or loan.
Average Rate of Return
The ratio of the average annual profit earned through an investment to the original investment, expressed as a percentage.
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