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Effective-Interest Method
A method of calculating the amortized cost of a bond and interest expense using a constant interest rate over the term of the bond.
Bond Interest Expense
The cost associated with borrowing money through bond issuance, representing the interest payments made to bondholders.
Income Statement
A financial document listing revenues and expenses, showing the profit or loss of a business over a specified period.
Straight-Line Amortization
A method of amortizing a bond discount or premium on a linear basis over the life of the bond or another asset.
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