Which Is the Most Theoretically Correct Method to Use When

question 30

Multiple Choice

Which is the most theoretically correct method to use when amortizing a bond discount or premium?

• A)market-interest rate method of amortization
• B)straight-line method of amortization
• C)effective-interest method of amortization
• D)Both straight-line and market-interest rate methods of amortization are equally preferred.

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