Perjury is considered a serious offense as it can be used to usurp the power of the courts, resulting in miscarriages of justice. In the United States, for example, the general perjury statute under Federal law classifies perjury as a felony and provides for a prison sentence of up to five years.
Effective interest rate for t periods, i t = (1 + i) t - 1 or as one equation i t = (1 + (r / m)) mt - 1. The rate per compounding period P = R / m, in percent.
Effective Interest Method. The effective interest method is a way of allocating interest expense from a bond evenly and consistently over the life of the bond. Remember when dealing with bonds, there are two different interest rates to deal with: the stated rate that appears on the bond and the market rate.