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The periodic cash flows from a debt instrument may be computed by A.multiplying the future cash flows from the note by an appropriate present value

The periodic cash flows from a debt instrument may be computed by

A.multiplying the future cash flows from the note by an appropriate present value factor.

  1. dividing the initial carrying amount by an appropriate present value factor.
  2. adding together the periodic interest income and the amortization.
  3. dividing the face amount by the life of the instrument.

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