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What is the role of the premium account

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Question: When a bond sells at a premium, is the periodic interest expense less than, equal to, or greater than the periodic interest payment? Why? Be specific. State any accounting principles that must be invoked, and how that (those) principle(s) apply. What is the role of the premium account in your answer? Fully explain why as we practiced in class. Be concise, yet thorough in your explanation.

Reference no: EM132746408

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