Examlex
Unless something unusual happens, like the outbreak of Cryptosporidium in the Milwaukee water supply, people assume that they are basically safe.
Premium Amortization
The gradual reduction of the premium paid above the face value of a bond, allocated over the life of the bond.
Bond Premium
The difference between the selling price of a bond and the bond’s face value when the bond is sold for more than par.
Effective-Interest Amortization
A method of amortizing a bond discount or bond premium that reflects the effective interest rate a company pays bondholders over the life of a bond.
Coupon Interest Rate
The annual interest rate paid by a bond expressed as a percentage of its face value.
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