Which Is the Preferred Method to Use When Amortizing a Bond

question 121

Multiple Choice

Which is the preferred method to use when amortizing a bond discount or premium?

• A)Effective-interest method of amortization
• B)Market-interest rate method of amortization
• C)Straight-line method of amortization
• D)Both straight-line and market-interest rate methods of amortization are equally preferable

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