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Non-Interest-Bearing Note
A debt instrument that does not accrue interest over its life, meaning it is issued at its face value and repaid at the same amount without additional interest payments.
Market Rate
The prevailing interest rate available in the marketplace for loans and deposits, influenced by supply and demand, the central bank’s policy, and other factors.
Interest Expense
An accounting item representing the charge for the use of borrowed funds, affecting an organization's net income.
Note Payable
A written promise to pay a specified sum of money, often bearing interest, at a future date.
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