When the Effective-Interest Method Is Used to Amortize Bond Premium

question 50

Multiple Choice

When the effective-interest method is used to amortize bond premium or discount, the periodic amortization will

• A) increase if the bonds were issued at a discount.
• B) decrease if the bonds were issued at a premium.
• C) increase if the bonds were issued at a premium.
• D) increase if the bonds were issued at either a discount or a premium.

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Definitions:

Main Memory

The primary volatile memory in a computer where programs and data currently in use are stored.

Constant Variable

A variable whose value is set once and cannot be changed throughout the life of a program, typically declared with a "const" modifier.

Tax Rate

A percentage at which an individual or corporation is taxed.

Primitive Types

Basic data types provided by a programming language as building blocks, such as int, char, and float.