Question
There are certain patterns we should expect to see on a bond amortization table. Complete the following statements regarding these patterns. A. Assuming a bond
There are certain patterns we should expect to see on a bond amortization table. Complete the following statements regarding these patterns. A. Assuming a bond is issued at either a premium or a discount, the carrying value on the issuance date should be equal to the bond's (Face value, Issue price or Total interest expense).
B. Assuming a bond is issued at a discount, the cash interest payment calculated every period should: (Be increasing Be decreasing or Stay the same).
C. Assuming a bond is issued at a discount, the carrying value over time should be (Increasing, Decreasing or Staying the same).
D. Assuming a bond is issued at a discount, the interest expense amount calculated every period using the effective interest method should be (Increasing, Decreasing or Staying the same). E. Assuming a bond is issued at a premium, the carrying value over time should be (Increasing, Decreasing or Staying the same).
F. Assuming a bond is issued at either a premium or a discount, the carrying value on the bond's maturity date, right before the final cash payment, should be equal to the bond's (Face value, Issue price or Total interest expense). G. Assuming a bond is issued at a premium, the interest expense amount calculated every period using the effective interest method should be (Increasing, Decreasing or Staying the same).
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