How Would the Amortization of a Bond Discount Affect Each

question 39

Short Answer

How would the amortization of a bond discount affect each of the following? $\begin{array}{lll}& \text {Bond's Net }& \text {Bond's }\\& \text { Carrying Value}& \text {Interest Expense }\\\hline\text { a. } & \text { Increase } & \text { Decrease } \\\text { b. } & \text { Increase } & \text { Increase } \\\text { c. } & \text { Decrease } & \text { Increase } \\\text { d. } & \text { Decrease } & \text { Decrease }\end{array}$

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Definitions:

Supply of Cars

The total number of cars that manufacturers are willing and able to sell at a given price level in a given period.

Time Interval

A specific duration of time between two points or events.

Input Prices

The cost of resources used in the production process.

Market Period

A short time frame in which the supply of a commodity is fixed, typically because the production process cannot be adjusted quickly.