Under the Effective-Interest Method of Amortization for Bonds,the Cash Payment

question 90

Multiple Choice

Under the effective-interest method of amortization for bonds,the cash payment on each interest payment date:

• A) increases over the first half of the life of the bond, and then decreases thereafter
• B) increases over the life of the bond
• C) decreases over the life of the bond
• D) is constant

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