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

question 97

Multiple Choice

When the effective interest method of amortization is used,what happens to the amount of discount or premium amortized as a bond moves toward maturity?

• A)The amount of discount or premium amortized each period decreases.
• B)The amount of discount or premium amortized each period increases for bonds sold at a discount but decreases for bonds sold at a premium.
• C)The amount of discount or premium amortized each period increases.
• D)The amount of discount or premium amortized each period decreases for bonds sold a discount but increases for bonds sold at a premium.

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Definitions:

Sieve Tubes

A series of sieve tube elements placed end to end to form channels for nutrient transport in plants.

Vessel Members

Components of the xylem tissue in plants that help conduct water and minerals from the roots to the rest of the plant.

Companion Cells

Plant cells that aid in the transport and regulation of nutrients within the phloem.

Pits

Small depressions or cavities on a surface, often used to describe features in plant or geological structures.