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Why is it considered "ideal" for price to just equal marginal cost?
Effective-Interest Method
A way of calculating the amortized cost of a bond and of allocating interest expense over the bond's life, reflecting the actual interest rate earned.
Discount on Bonds Payable
The difference between the face value of a bond and its selling price, when sold for less than its face value.
Amortization
The process of spreading out a loan or intangible asset cost over a specific period of time for accounting and taxation purposes.
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