When the Effective-Interest Method of Amortization Is Used,what Happens to Interest

question 210

Multiple Choice

When the effective-interest method of amortization is used,what happens to interest expense as a bond moves toward maturity?

• A)Interest expense falls for bonds sold at either a discount or a premium.
• B)Interest expense rises for bonds sold at a discount and falls for bonds sold at a premium.
• C)Interest expense rises for bonds sold at either a discount or a premium.
• D)Interest expense falls for bonds sold at a discount and rises for bonds sold at a premium.

---

Definitions:

Thoughts

mental processes involving thinking, reasoning, or contemplating, often reflecting personal beliefs, opinions, or plans.

Brainstorming

A group creativity technique by which efforts are made to find a solution for a specific problem by gathering a list of ideas spontaneously contributed by its members.

Topic Sentence

A topic sentence is the first sentence in a paragraph that introduces the main idea or point that will be discussed throughout the paragraph.

Thunderstorm

A storm characterized by the presence of lightning and thunder, often accompanied by heavy rain or hail.