Effective-interest method of amortizing bond discount

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Reference no: EM131214570

Under the effective-interest method of amortizing bond discount, the interest expense recorded for each semiannual interest payment_______.

is equal to the carrying value of the bond times the contract rate of interest for one-half a year

will decrease over the life of the bond

will increase over the life of the bond

will equal the amount of cash paid for each semiannual interest payment

Reference no: EM131214570

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