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When bonds are issued at a premium, the interest rate used to calculate interest expense will be the contractual rate. amortized cost of the bonds
When bonds are issued at a premium, the
interest rate used to calculate interest expense will be the contractual rate. | ||
amortized cost of the bonds will increase with successive amortization. | ||
interest paid to bondholders will increase after each interest payment date. | ||
amount of premium amortized will get larger with successive amortization. |
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