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Discounted Note
A promissory note whose proceeds are issued at a price lower than its face value, with the difference compensating the lender for risk.
360-Day Year
An accounting convention that simplifies interest calculation by assuming all months have 30 days, resulting in a 360-day year.
Interest Charged
The cost incurred for borrowing money or the amount earned on deposited funds, usually expressed as a percentage of the principal.
Contingent Liability
A potential financial obligation that may arise depending on the outcome of a future event.
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