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Effective Interest Method
A technique of calculating the amortized cost of a bond and the interest expense over the bond's life, taking into account any premiums or discounts.
Journal Entry
A record in accounting that notes every transaction, capturing both the debit and credit side, in financial statements.
Market Rate
The prevailing interest rate available in the marketplace or the price at which goods can be bought or sold in an open market.
Bond Issue
The process by which a borrower issues bonds to investors in order to raise capital.
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