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Do you know why D is incorrect? When the effective-interest methodpf bond discount amortization is used, a. the applicable interest rate used to compute interest
Do you know why D is incorrect?
When the effective-interest methodpf bond discount amortization is used, a. the applicable interest rate used to compute interest expenseis interest rate. b. the carrying value of the bond\will decrease each period. interest expense will not be a constant dollar amountover the life of the bond. d. interest paid to ondholders will be a function of the effective-interest rate on the date the bonds are iss ed.
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