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The Effective-Interest Amortization Method Allocates an Amount of Bond Discount

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The effective-interest amortization method allocates an amount of bond discount or premium,based on the market interest rate at issuance,to each interest period over the life of the bond.


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Vicious Cycle

A sequence of reciprocal cause and effect in which two or more elements exacerbate each other, leading to a worsening scenario.

Self-Fulfilling Prophecy

The tendency for a prediction to actually occur once it is believed; for example, when a victim believes that prejudice against him or her is true, then fulfills these negative expectations.

Tendency

An inclination or predisposition to think, behave, or proceed in a particular way.

Self-Esteem

The perception and evaluation of one's own worth, capabilities, and overall self-respect.

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