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2 October, 02:16

Use of the effective-interest method in amortizing bond premiums and discounts results in1. a greater amount of interest income over the life of the bond issue than would result from use of the straight-line method. 2. a varying amount being recorded as interest income from period to period. 3. a variable rate of return on the book value of the investment. 4. a smaller amount of interest income over the life of the bond issue than would result from use of the straight-line method.

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  1. 2 October, 05:14
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    b. a varying amount being recorded as interest income from period to period.

    Explanation:

    Use of the effective-interest method in amortizing bond premiums and discounts results in

    a. a greater amount of interest income over the life of the bond issue than would result from use of the straight-line method.

    b. a varying amount being recorded as interest income from period to period.

    c. a variable rate of return on the book value of the investment.

    d. a smaller amount of interest income over the life of the bond issue than would result from use of the straight-line method.
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