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The four common ways in which norms develop for controlling and directing behavior are critical events, primacy, carryover behaviors, and implicit statements.
Amortization
Amortization refers to the process of spreading out a loan or intangible asset cost over a fixed period, typically the useful life of the asset, for accounting and taxation purposes.
Market Rate of Interest
The prevailing rate of interest determined by supply and demand in the credit market at which borrowers and lenders agree to transact.
Stated Rate of Interest
The stated rate of interest is the fixed rate that a borrower agrees to pay to a lender, expressed as a percentage of the principal loan amount.
Bond Redemption
The process of repaying the face value of a bond to the bondholders upon its maturity.
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