If a Bond Sells at a Premium, the Amortization of the Premium

question 19

Multiple Choice

If a bond sells at a premium, the amortization of the premium will:

• A)have no effect on periodic expense.
• B)decrease periodic expense.
• C)increase periodic interest expense.
• D)make periodic interest expense equal to the periodic interest payment.

---

Definitions:

Emotional Support

Assistance provided through empathy, concern, and caring to help individuals cope with stress and emotional challenges.

Type A Men

Males characterized by competitive drive, aggressiveness, impatience, and a fast-paced lifestyle, often linked to stress and heart disease.

Type B Men

Type B Men refers to individuals with a personality type characterized by lower levels of stress, patience, and a laid-back attitude, contrasting with Type A personality.

Stomach Ulcers

Open sores that develop on the inner lining of the stomach, upper small intestine, or esophagus, often causing pain and discomfort.