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24 Under the effective-interest method of bond discount or premium amortization, the periodic rest expense is equal to a the stated (nominal) rate of interest

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24 Under the effective-interest method of bond discount or premium amortization, the periodic rest expense is equal to a the stated (nominal) rate of interest multiplied by the face value of the bonds. b. the market rate of interest multiplied by the face value of the bonds. c. the stated rate multiplied by the begirining-of-period carrying amount of the bonds. d. the market rate multiplied by the beginning-of-period carrying amount of the bonds. 2 When the effective-interest method is used to amortize bond premium or discount, the periodic amortization will a. increase if the bonds were issued at a discount. b. decrease if the bonds were issued at a premium. c. increase if the bonds were issued at a premium. d. increase if the bonds were issued at either a discount or a premium. lo Stone, Inc. issued bonds with a maturity amount of $200,000 and a maturity ten years from date of issue. If the bonds were issued at a premium, this indicates that a. the effective yield or market rate of interest exceeded the stated (nominal) rate. b the nominal rate of interest exceeded the market rate. the market and nominal rates coincided. no necessary relationship exists between the two rates. c. d

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