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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 231.88-0.3%10:20 AM EST

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To: Jan Crawley who wrote (3981)5/5/1998 5:05:00 PM
From: Mark Myword  Read Replies (2) of 164684
 
Jan-
as to #1) Yep - that's what it looks like - the total obligation is
$530 million in ten years

as to #2) the discount on the notes is amortized to expense each month/quarter - it works out to about 10.2 million per quarter , on an average basis. That is , 10.2 million of interest expense each quarter for the next five years. If they account for this using the "effective interest method" the amounts will be less in the early years , and more in later years, over the five year span. That's because the debt is growing as time goes by (no cash is being paid out)
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