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In a well-structured relational database,
Loss On Redemption
The financial loss incurred when a debt instrument, such as a bond, is repaid before its maturity date.
Effective-Interest Method
A method of calculating the amortized cost of a bond and the amount of interest expense over its relevant period.
Amortization
The process of spreading out the cost of an intangible asset over its useful life or the repayment of loan principal over time.
Interest Expense
The cost incurred by an entity for borrowed funds over a period, reflected in its income statement.
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