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Hi, please help to these questions and explain why? S26 Ch14/. If bonds are issued initially at a premium and theeffective-interest method of amortization is
Hi, please help to these questions and explain why?
S26 Ch14/. If bonds are issued initially at a premium and theeffective-interest method of amortization is used, interest expensein the earlier years will be
a. greater than if the straight-line method were used.
b. greater than the amount of the interest payments.
c the same as if the straight-line method were used.
7 Ch14/. Amortization of a premium increases bond interestexpense, while amortization of a discount decreases bond interestexpense?
d. less than if the straight-line method were used.
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