Examlex
Which of the following is an analytical tool used in six-sigma quality improvement programs?
Effective Interest Method
A method used in accounting to allocate the interest income or expense over the relevant period, adjusting for the impact of discount or premium on the purchase of bonds.
Bond Discount
The difference between the face value of a bond and its selling price when the bond is sold for less than its face value.
Bond Premium
The amount by which the market price of a bond exceeds its face value, often due to lower market interest rates compared to the bond's fixed rate.
Effective Interest Rate
The real rate of return on a loan or financial product, reflecting the actual interest earned or paid over a specified period, including the effect of compounding.
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