When Bonds Are Issued at a Premium, the Total Interest

question 21

Multiple Choice

When bonds are issued at a premium, the total interest cost of the bonds over the life of the bonds is equal to the amount of the

• A)interest paid over the life of the bond.
• B)interest paid over the life of the bond plus the amount of premium amortized.
• C)interest paid over the life of the bond minus the amount of premium amortized.
• D)premium.

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