Using the Effective Interest Rate Method to Amortize Bond Discount

question 145

Multiple Choice

Using the effective interest rate method to amortize bond discount will

• A) cause the carrying value of the bond to decrease as it approaches the maturity date.
• B) cause the carrying value of the bond to increase as it approaches the maturity date.
• C) cause the carrying value to be the same as the issue price.
• D) not change the carrying value.

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