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A company uses the effective interest method of amortization for a bond issued as a premium. In the early years of the life of the
- A company uses the effective interest method of amortization for a bond issued as a premium. In the early years of the life of the bond, the interest expense will be less than the interest paid. In the later years of the bonds life, the interest expense will be greater than the interest paid. (True/False)
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