Examlex
Because common stock represents a residual interest in the corporation,the value of common stock is equal to the total firm value less the firm's outstanding debt.
Bond Indenture
A legal contract between a bond issuer and a bondholder that details the terms of the bond, such as the coupon rate, maturity date, and obligations of the issuer.
Bond Premium
The amount by which the market price of a bond exceeds its face value, often occurring when the bond's interest rate is higher than current market rates.
Semiannual Interest
Interest on a loan or security that is calculated and paid twice a year.
Straight-line Method
A depreciation technique that allocates an equal amount of depreciation each year over an asset's useful life.
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