Under the effective interest method, a company's interest expense and amortization amount will change every single year. The table below shows how the bond would amortize over the full 10-year period.

The loan summary table shows the total payment and interest, the initial nominal annual and effective interest rates, payment and compounding intervals, the length of the loan in the time units ...

For example, a bond with a 3% nominal rate will have a real interest rate of -1%, if the inflation rate is 4%. Negative rates affect lenders, borrowers, and investors.

Under the effective interest method, a company's interest expense and amortization amount will change every single year. The table below shows how the bond would amortize over the full 10-year period.