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The excess amount by which bonds are issued over their face value, representing an additional cost of borrowing to the issuer.
Amortization
The method of incrementally expensing the original value of an intangible asset throughout its operational life.
Bond Indenture
A legal contract between a bond issuer and bondholders, detailing the terms and conditions of the bond.
Straight-Line Amortization
A method of calculating the gradual reduction in the cost value of an intangible asset over its useful life in fixed, equal amounts.
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