The Effective-Interest Method of Amortizing Bond Premiums

question 79

Multiple Choice

The effective-interest method of amortizing bond premiums

• A) is too complicated for practical use.
• B) uses a constant rate of interest.
• C) is another name for the straight-line method.
• D) is needed to determine the amount of cash to be paid to bondholders at each interest date.

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Definitions:

Significant Risk Factor

A characteristic or condition that greatly increases the likelihood of developing a disease or injury.

Conditions

Circumstances affecting the way in which people live or work, especially with regard to their safety or well-being.

Disease Risk Factor

A characteristic, condition, or behavior that increases the likelihood of developing a disease or health condition.

Life Span

The maximum duration of life of a species or the length of life of an individual.