207

question 209

Multiple Choice

207. When the effective-interest method of bond premium amortization is used, the

• A)amount of premium amortized will get larger with successive amortization.
• B)carrying value of the bonds will increase with successive amortization.
• C)interest paid to bondholders will increase after each interest payment date.
• D)interest rate used to calculate interest expense will be the contractual rate.

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