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When a bond is issued at a premium and the effective interest method is used to amortize the bond premium: The interest payments exceed interest

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When a bond is issued at a premium and the effective interest method is used to amortize the bond premium: The interest payments exceed interest expense by the amount of the premium amortized. 0 Interest expense increases gradually over the life of the bond. 0 The premium is deducted from Bonds Payable. 0 Its carrying value gradually increases over the life of the bond

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